Trading signal occurs in sETF model portfolio: Sell ITB, Buy Cash.
Stocks opened the week with a sell-off and spent the rest of the week climbing back due to bargain hunting and short covering by investors. For the week S&P 500 index closed at 1951, up 1.04%, Dow Jones Industrial Average gained 0.97% and Nasdaq composite index ended up higher by increasing 0.75%.
 |
| Weekly chart of S&P 500 index |
S&P 500 remained in the correction zone trading below its 28 week moving average. A reversal pattern showed up this week indicating that the 1867 low reached five weeks ago may be the bottom of this correction. The index has fallen to this level twice and each time it climbed back and ended up higher. In terms of timing, we still expect the correction to last another four to five weeks such that the volatility subsides and the moving average comes down to 2000 level to meet the index.
As the correction phase continues, one more model portfolio issue the trading signal to move to side line. This week the AMI of the top rank fund, ITB turned negative and a trading signal was issued to sell ITB and move to Cash.
No comments:
Post a Comment