Trading signal occurs in sETF model portfolio: Sell IGV, Buy ITB.
Stocks opened the week strong but fail to keep the momentum going and ended up flat. Energy prices experience high volatility this week. US government report showed large increase in oil inventory for the 2nd week on Wednesday causing a plunge in oil prices while news on Thursday about two oil tankers been attacked in Persian Gulf sending oil prices sharply higher. For the week, S&P 500 index closed at 2886 up 0.47%, Dow Jones Industrial Average gained 0.41% and technology laden NASDAQ composite index increased 0.7% for the week.
S&P 500 index went up a bit higher carried by the upward momentum. The index gaped up Monday, and went up to 2910 mid-week but failed to march higher and ended up about where it started. The short body candle in the weekly chart shows the indecision in the market this past week. Our outlook remains the same as last week with slightly negative bias. However, if the index can consolidate above its 28 week moving average, there is a good opportunity go higher.
As interest rate comes down, housing and utility sectors goes up. sETF model portfolio issued a trading signal this week to buy into home construction sector fund, ITB, while moved away from software sector index fund, IGV. The model portfolio has held IGV for about 4 months with a gain of 3%. ITB has been the number 1 ranked fund in the past 6 weeks and looks like the high momentum will continue for a while. We will find out how it performs in the next couple months.
Stocks opened the week strong but fail to keep the momentum going and ended up flat. Energy prices experience high volatility this week. US government report showed large increase in oil inventory for the 2nd week on Wednesday causing a plunge in oil prices while news on Thursday about two oil tankers been attacked in Persian Gulf sending oil prices sharply higher. For the week, S&P 500 index closed at 2886 up 0.47%, Dow Jones Industrial Average gained 0.41% and technology laden NASDAQ composite index increased 0.7% for the week.
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| Weekly chart of S&P 500 index |
S&P 500 index went up a bit higher carried by the upward momentum. The index gaped up Monday, and went up to 2910 mid-week but failed to march higher and ended up about where it started. The short body candle in the weekly chart shows the indecision in the market this past week. Our outlook remains the same as last week with slightly negative bias. However, if the index can consolidate above its 28 week moving average, there is a good opportunity go higher.
As interest rate comes down, housing and utility sectors goes up. sETF model portfolio issued a trading signal this week to buy into home construction sector fund, ITB, while moved away from software sector index fund, IGV. The model portfolio has held IGV for about 4 months with a gain of 3%. ITB has been the number 1 ranked fund in the past 6 weeks and looks like the high momentum will continue for a while. We will find out how it performs in the next couple months.
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