Trading signal occurs in HSA model portfolio: Sell IUTIX, Buy JLVIX.
After last week's sharp drop and terrorist attacks in Paris, stocks rallied this week, recovered most of the lost of last week. Markets seemed to be prepared for the interest rate hike in December as indicated in Fed's meeting minutes released on Wednesday. For the week S&P 500 index closed at 2089, up 3.35%, Dow Jones Industrial Average gained 3.71% and Nasdaq composite index increased 3.59%.
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| Weekly chart of S&P 500 index |
Strong rally pushed S&P 500 index back above its 28 week moving average as shown in the weekly chart. Momentum of S&P 500 index is trending higher and the test of the support level looks to be successful to sustain the up trend. Next step is for the index to break above its previous high of 2125 level.
As market condition turned positive, more model portfolios have moved away from defensive positions. This week, a trading signal occurs in HSA model portfolio to sell US treasury index, IUTIX, and buy Large equity fund, JLVIX, as IUTIX has fallen below top 5 ranks in the HSA ranking table. We have held IUTIX since beginning of September with a loss of 0.45%.
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