Fund Rankings Update, 10/19/2018

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 HSA model portfolio: Sell FKAIX, Buy VVAIX
Trading signal occurs in SELECT model portfolio: Sell FSRPX, Buy FSHCX

Trading signal occurs in ETF model portfolio: Sell IGV, Buy IYH

Trading signal occurs in RSP model portfolio: Sell FDGRX, Buy 99327 Conserv Income Fund

Stocks closed mixed after sharp drop the week before.  S&P 500 index and DJIA managed to stay positive while NASDAQ composite index still stay in the negative territory. Concern about rising interest rates out weighed strong company earnings from Morgan Stanley, Goldman Sachs, and Netflix.  For the week, S&P 500 index closed at 2767 up 0.02%, Dow Jones Industrial Average gained 0.41% and technology laden NASDAQ composite index decreased 0.64%.

Weekly chart of S&P 500 index

S&P 500 index failed the attempt to climb and stay above the 28 week moving average. As a result, it closed the week below the trend line which became its resistance. The momentum indicator is heading downward, and we expect the consolidating will last for another few weeks. 

The sharp sell off and S&P 500 index' failure to stay above the trend line has changed the momentum rankings quickly and forced our model portfolios to move to a more defensive position. I have made a deviation in the trading signal for RSP model portfolio: Instead of buying the current number 1 ranked fund, SS LG CAP INDEX, I have changed it to buy CONSERV INCOME FUND. As the Large CAP fund is similar in style to FDGRX, and under the currently investment climate, CONSERV INCOME FUND is a better choice in my opinion.