Fund Rankings Update, 8/30/2019

Weekly Average Momentum Index (AMI) rankings of HSA, SSPP, RSP, SELECT, ETF, iETF, sETF have been posted in "Rankings", "Trading Logs" pages, as well as in  http://ycprankings.awardspace.us/RankingTables.htm.

Trading signal occurs in RSP model portfolio: Sell FCNTX, Buy 42634.

Stocks rose sharply in the last week of summer as investors seemed to be more optimistic about US-China trade talk.  President Trump made encouraging tweets to boost investor sentiment after his damaging tweet ordering company to seek alternative to China. China's "calm" and non-retaliation attitude also helps to push major indices higher.  For the week, S&P 500 index closed at 2926 up 2.79%, Dow Jones Industrial Average gained 3.02% and technology laden NASDAQ composite index increased 2.72%.

Weekly chart of S&P 500 Index

As observed in the weekly chart, S&P 500 index has traded in the 2940-2820 range for the fourth week. The index has closed at the high end of the range and above its 28 week moving average. Its momentum indicator is in the mid-point a bit above 50.  As the quiet summer trading season coming to an end and investors coming back at trading floor after the long weekend, we expect the major stock indices will brake out their trading ranges and pick a direction to go in the next couple of weeks. 

A trading signal occurs in the RSP model portfolio this week due to high volatility in August. The portfolio has switched to a more defensive position by selling the Contra fund (FCNTX) and buying into Pimco Core Plus Bond fund.