Fund Rankings Update, 8/27/2016

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.

Stock markets reacted negatively to Fed Chair Janet Yellen's remark about rate hikes in the coming months. For the week S&P 500 index closed at 21693, down 0.681%, Dow Jones Industrial Average lost 0.85% and the technology laden NASDAQ composite index decreased 0.37%.

Weekly chart of S&P 500 index

Two weeks ago, we said that S&P 500 index was in an extreme overbought condition and might start seeing some consolidation, and here we are as the index has since fallen from the high of 2193 to the low of 2160 and trying to stay above the short term support of 2160. As the momentum is still in the high gear, we expected the rally will continue after this consolidate phase.

Fund Rankings Update, 8/19/2016

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.

Stocks closed almost flat for the second week looking for direction.  For the week S&P 500 index closed at 2183, down 0.01%, Dow Jones Industrial Average lost 0.13% while technology laden NASDAQ composite index increased 0.1%.

Weekly chart of S&P 500 index

Fund Rankings Update, 8/12/2016

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 FIUIX, Buy FOCPX

Stocks closed flat this week as all major indices reached their all time highs mid-week.  For the week S&P 500 index closed at 2184, up 0.05%, Dow Jones Industrial Average gained 0.18% and again technology laden NASDAQ composite index increased 0.23%.

Weekly chart of S&P 500 index

After rising four weeks since end of June, S&P 500 index has slow down its advance in the past 4 weeks since mid July. During the past 4 weeks, we have seen sector rotation in the stock markets as technology and growth funds rose to the top of our momentum ranking tables, while defensive funds such as utility and income funds went down the ladders. The switching away from defensive funds indicates that this rally may have some staying power. However, as the index is at the extreme overbought condition, the rally may experience a consolidation phase before running higher.

Fund Rankings Update, 8/5/2016

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 SELECT model portfolio: Sell FSNGX, Buy FSMEX

Trading signal occurs in ETF model portfolio: Sell IGE, Buy ILF

Trading signal occurs in sETF model portfolio: Sell IGE, Buy IHI

Better than expected US job report push the markets higher. On Friday, Labor department reported that US economy added 255000 jobs in July, well above economists' estimation. The strong employment data in June and July gave investor confidence on the robustness of the economy growth.  Small cap and technology stocks continued to lead the way in this rally.  For the week S&P 500 index closed at 2152, up 0.43%, Dow Jones Industrial Average gained 0.6% and again technology laden NASDAQ composite index increased 1.14%.

Weekly chart of S&P 500 index

Weakness in oil prices which have fallen from $50 a barrel to $40 in the past one and half month has greatly reduced the momentum in the energy related funds. At the same time, technology sector funds and health care sector funds are gaining momenta due to better than expected company earnings. In the SELECT and sETF, our two sector fund portfolios, tradings signals were issues to due to this sector rotation. In SELECT, we will sell natural gas fund, FSNGX and buy medical system fund, FSMEX. In sETF model portfolio, we will sell natural resource index fund, IGE, and buy medical device index fund, IHI. In ETF model portfolio, we will replace IGE with Latin America index fund, ILF.  Detail trading records can be fund in the Trading log page. 

Weekly chart of light crude oil price