Trading signal occurs in HSA model portfolio: Sell JLVIX, Buy Cash
Trading signal occurs in ETF model portfolio: Sell IGM, Buy IYR
Trading signal occurs in sETF model portfolio: Sell IGM, Buy ICF
Trading signal occurs in FEMKX model portfolio: Sell FEMKX, Buy Cash
Stocks fell sharply in the first trading week of 2016. Market turmoil in China spooked investors' confidence in its economy growth and pulled down other global markets. Oil prices fell below $35 support level and continue to fall. US stock markets tried to recover Friday morning on better than expected job report but failed miserably under overwhelming selling pressure. For the week S&P 500 index closed at 1922, down 5.96%, Dow Jones Industrial Average lost 6.19% while NASDAQ composite index decreased 7.26%.
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| Weekly chart of S&P 500 index |
A long bodied red candle shows up in weekly chat of S&P 500 index due to the sell-off similar to that in August 2015. A support level around 1875 can be readily identified during that sell-off and that's where we think the index is heading to next week before a rebound can occur. S&P currently stands at 1922 about 10% below its peak of 2134. The next support level below 1875 is around 1820 which represents a normal 15% market correction.
The sever sell-off has turned the average momentum indicators into negative for quite a few top ranked funds in our ranking tables. Four trading signals were issued in HSA, ETF, sETF, and FEMKX model portfolios to move either to cash position or to defensive funds. Detail trading records can be found in the "Trading logs" page.
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