Trading signal occurs in HSA model portfolio:, Sell NSVAX, Buy BMCAX
Encouraged by positive earning reports from Wal-Mart and Home Depot and housing data, stocks went up at the beginning of the week but soon ran out of the steam. Released Fed meeting minutes showed the increasing likelihood of a March rate hike instead of June. For the week, S&P 500 index closed at 2367, up 0.69%, Dow Jones Industrial Average gained 0.96% while technology laden NASDAQ composite index increased 0.12%.
Encouraged by positive earning reports from Wal-Mart and Home Depot and housing data, stocks went up at the beginning of the week but soon ran out of the steam. Released Fed meeting minutes showed the increasing likelihood of a March rate hike instead of June. For the week, S&P 500 index closed at 2367, up 0.69%, Dow Jones Industrial Average gained 0.96% while technology laden NASDAQ composite index increased 0.12%.
 |
| Weekly chart of S&P 500 index |
Without much stimulation from economic data, the advanced of S&P 500 index this week was driven mainly by the carry over momentum. It appears that the index is about to take a break after the recent run above 2300. A pause or a consolidation here will be healthy to the overall up trend.
A trading signal occurs this week in HSA model portfolio. The momentum rank of NSVAX has fallen below the trading threshold and is replaced by the number one rank fund, BMCAX. This trading signal also reflects the under-performance of small cap stocks this year.
No comments:
Post a Comment