Fund Rankings Update, 8/17/2018

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 sETF model portfolio: Sell IEO, Buy IHF

Concern about global economy growth due to Turkish currency crisis weighed on investor sentiment at the beginning of the week. However, stocks got a lift Thursday from news about US and China to resume trade talk in November.  For the week,  S&P 500 index closed at 2850 up 0.59%, Dow Jones Industrial Average gained 1.41% while technology laden NASDAQ composite index decreased 0.29%.

Weekly chart of S&P 500 index

S&P 500 index made a fourth attempt to break above 2850 resistance level this week. The index has traded between 2800 and 2850 for five weeks. As its momentum is still in the top tier region, we still think the index will move higher. However, we need to pay attention if the index fails to break the 2850 resistance and forms a short term rounded top formation. 

A trading signal was issued this week in sETF model portfolio to sell energy sector related index fund, IEO, and buy health care related fund, IHF. Health care related sectors have performed very strongly in the last 4 weeks, which can be seen in both "Select" and "sETF" ranking tables. IEO failed to maintain its momentum longer and we will sell it after holding it for 102 days with a slight loss. Hopefully IHF has a more staying power and can turn into a winning trade.