Fund Rankings Update, 10/23/2015

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 iETF model portfolio: Sell Cash, Buy EWY.
Trading signal occurs in FEMKX timing model: Sell Cash, Buy EWY.

Encouraged by European Central Bank's announcement to buy back debt and China's rate cut, stocks continued to head higher for the third week.  Technology sector provided the biggest gain among the industrial sectors as big tech companies, Microsoft, Amazon and Alphabet (Google), all reported better than expected quarterly earnings.  For the week S&P 500 index closed at 2075, up 2.07%, Dow Jones Industrial Average gained 2.5% and Nasdaq composite index ended up higher by increasing 2.97%.

Weekly chart of S&P 500 index

S&P 500 index has risen 2% above its 28 moving average with the momentum indicator, STO, above the 50 mark. With these condition, the correction phase since mid August has concluded. The development is about one to two weeks ahead of our prediction. With the index rising so fast, we may see the index consolidate above the moving average or even retest the support in the coming weeks.

 As the general market wen up strong for three weeks, the timing indicators in our ranking tables have switched to a more bullish stance. In the iETF ranking table, Korean index fund has turned green and a trading signal was issued to move out of the cash position and move to EWY.  For FEMKX timing model, we use the momentum indicator, STO, as the timing signal. FEMKX timing model has been on the sideline since the end of May and has turned bullish this week as its STO has risen above 50.  After this week, we still have SSPP, ETF, and sETF model potfolios holding the cash positions either due to holding period threshold or negative AMI. As the market condition improves, we expected these model portfolios to move away from the cash position in as well.

Weekly chart of FEMKX