Trading signal occurs in SSPP model portfolio:, Sell FGRIX, Buy FDGRX
Encouraged by strong economic data, all major indices went up and reached record high during the week. Retail sales went up 0.6% and consumer price went up 0.3% in January. Banking and financial sectors were pushed higher as investors expect Fed to raise short term interest rate earlier than expected. For the week, S&P 500 index closed at 2351, up 1.51%, Dow Jones Industrial Average gained 1.75% while technology laden NASDAQ composite index increased 1.82%.
Encouraged by strong economic data, all major indices went up and reached record high during the week. Retail sales went up 0.6% and consumer price went up 0.3% in January. Banking and financial sectors were pushed higher as investors expect Fed to raise short term interest rate earlier than expected. For the week, S&P 500 index closed at 2351, up 1.51%, Dow Jones Industrial Average gained 1.75% while technology laden NASDAQ composite index increased 1.82%.
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| Weekly chart of S&P 500 index |
After breaking above short term resistance of 2300, S&P 500 keep marching higher with extreme high momentum. We expect the up-trend to continue before any correction happens.
Strong up trend has caused investors to move toward growth oriented sectors. A trading signal was issued in SSPP model portfolio to sell FGRIX and buy into FDGRX, which weighed more in growth companies. We have held FGRIX for 3 moths with a gain of 6.41%.
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