Trading signal occurs in SELECT model portfolio: Sell FSNGX, Buy FSMEX
Trading signal occurs in ETF model portfolio: Sell IGE, Buy ILF
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%.
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| 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.
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| Weekly chart of light crude oil price |
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