Trading signal occurs in SSPP timing model: Sell FOCPX, Buy FDEGX.
Trading signal occurs in iETF timing model: Sell EWN, Buy EWL.
Stocks were flat as investors waiting for interaction between Trump and Xi in G-20 meeting to gauge the progress of the trade talk between US and China. On the economy front, durable goods orders and manufacturing activities contacted more than expected while personal income and spending went up in May. For the week, S&P 500 index closed at 2941 down 0.29%, Dow Jones Industrial Average lost 0.45% and technology laden NASDAQ composite index decreased 0.32% for the week.
S&P 500 index took a break this past week but still close only 9 points below its 2950 resistance level. The momentum indicator STO[15,1] of the index is in the overbought region and heading higher. It is very likely that the index will continue its upward advance. However, this market has been driven largely by headline news and tweets in trade and geopolitical tension, and the direction of the market can change in an instant.
Two trading signals have been issued in the model portfolios this week. FOCPX, a small cap focused fund is being replaced with FDEGX, a large cap focused growth funds in SSPP model portfolio due to momentum ranking change. In the iETF model portfolio, Netherlands index fund, EWN, is being replaced with Switzerland index fund, EWL, due to momentum ranking change as well. Note that iETF model portfolio has not performed as well as other model portfolios due to higher volatility in the international index funds. Holding periods in the iETF model portfolio are generally shorter than other portfolios. Weekly momentum ranking system is trying to catch the intermediate-term up trend and needs longer holding period to reap the profit.
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| Weekly chart of S&P 500 index |
S&P 500 index took a break this past week but still close only 9 points below its 2950 resistance level. The momentum indicator STO[15,1] of the index is in the overbought region and heading higher. It is very likely that the index will continue its upward advance. However, this market has been driven largely by headline news and tweets in trade and geopolitical tension, and the direction of the market can change in an instant.
Two trading signals have been issued in the model portfolios this week. FOCPX, a small cap focused fund is being replaced with FDEGX, a large cap focused growth funds in SSPP model portfolio due to momentum ranking change. In the iETF model portfolio, Netherlands index fund, EWN, is being replaced with Switzerland index fund, EWL, due to momentum ranking change as well. Note that iETF model portfolio has not performed as well as other model portfolios due to higher volatility in the international index funds. Holding periods in the iETF model portfolio are generally shorter than other portfolios. Weekly momentum ranking system is trying to catch the intermediate-term up trend and needs longer holding period to reap the profit.
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