Fund Rankings Update, 8/28/2015

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.

Trading signal occurs in SSPP model portfolio: Sell FCNTX, Buy Cash
Trading signal occurs in HSA model portfolio: Sell FKASX, Buy IUTIX
Trading signal occurs in RSP model portfolio: Sell 05084, Buy05088

Stocks experienced wild ride this past week. 10 minute into the first trading day, Dow Jones Industrial average plunged more than 1000 points while closed the day only 500 points down. On Tuesday, DJIA went up more than 400 points before the last hour selling and ended down 200 points. Investor sentiment finally turned positive and major indices rallied on Wednesday and Thuraday with help on company merger news and strong US second quarter GDP.  For the week S&P 500 index closed at 1988, up 0.91%, Dow Jones Industrial Average gained 1.11% and Nasdaq composite index ended up higher by increasing 2.2%.

Weekly chart of S&P 500 index

S&P 500 index has formed a long tail "Hammer" pattern in its weekly chart similar to the pattern in October 2014. However, the index is further below its trend line this time around and will take longer to recover. The 28 week moving average used to be the support line on the way up, now it becomes the resistance, and the index has to break the resistance to the end this correction.  Next week's trading is critical to see if the index will have a "V" shape recovery or not.  

Due to the market sell-off, three trading signals were issued this week in SSPP, HSA and RSP model portfolios separately to move to cash or defensive positions (see "Trading Logs" page for detail). With these trading signals, all the model portfolios are either in defensive position or cash position. The last time this happened was in August - October, 2011 when S&P 500 index endured a 21 % correction for 3 months.