Fund Rankings Update, 10/11/2019

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 sETF model portfolio: Sell IHI, Buy ITB

Market sentiment was driven majorly by uncertainty in US-China trade negotiation this week. Rumors about US' plan on black listing Chinese companies and limiting US pension fund investment in China have plunged the major stock indices mid-week.  However, signs of progress in the trade talk pushed the major indices higher at the end of the week.  For the week, S&P 500 index closed at 2970 up 0.62%, Dow Jones Industrial Average gained 0.91% while technology laden NASDAQ composite index increased 0.93%.

Weekly chart of S&P 500 index

S&P 500 index went down below its 28 week moving average in mid-week but ended up above the trend line support and even closed higher than it started.  It is encouraging to see that this is the fourth time the index has successfully tested the 2940 support in the past 5 weeks and the second time the index went into 2940-2820 trading range and quickly recovered above it. If S&P 500 index can hold the 2940 level, we may see the index slowly changing its direction and move upwards.

A trading signal occurs in sETF model portfolio this week to change position from medical device sector (IHI) to home construction (ITB) sector which is more favorable in lower interest rate environment.