Fund Rankings Update, 5/1/2015

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted in "Rankings", "Trading Logs" pages, and  http://ycprankings.awardspace.us/RankingTables.htm.


Some bad earning reports from tech sector and slower than expected GDP growth in the first quarter dragged down the stock stock prices for the whole week before the rebound on Friday. For the week S&P 500 index went down 0.44% and closed at 2108, Dow Jones Industrial Average lost 0.31%, and Nasdaq composite index decreased 1.7%.    

As observed in the weekly chart, S&P 500 index is still trading within the 2040 and 2120 channel. The 2120 level turns out to be a very strong resistance. The index has tried to break though the resistance since February but failed to do so. Again, the weekly trading range has been reduced in the past three weeks and the index looks to be ready for a breakout.

Weekly chart of S&P 500 index

 Biotech index (IBB) has suffered a serious pulled back as it has lost 5.4% last week due to high valuation and profit taking.  IBB has dropped to the low of $330 nearly touching the 28 week moving average at $324 before Friday's rebound to $344. We have discussed the over extension of biotech sector fund in our March blog and cautioned about a correction back to the 28 week moving average. In the weekly chart, every time a pullback to or near the 28 week moving average has shown to be a good opportunity to buy into the index. We will see if this is another one in the making 

Weekly chart of IBB