Fund Rankings Update, 11/08/2019

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 SSPP model portfolio: Sell FIUIX, Buy FPBFX
Trading signal occurs in HSA model portfolio: Sell NBRIX, Buy VTRIX
Trading signal occurs in ETF model portfolio: Sell IYR, Buy EWJ

Stocks largely influenced by the US-China trade negotiation this week. Optimism about a "phase one" trade deal and a roll back of tariffs boosted investors' sentiment even though it was toned down by White House later in the week.  For the week, S&P 500 index closed at 3093 up 0.85%, Dow Jones Industrial Average gained 1.22% and technology laden NASDAQ composite index increased 1.06%.

Weekly chart of S&P 500 index

S&P 500 is now 5% above its 28 week moving average. Both the index and its momentum indicator are making higher highs and we expect the up-trend to continue. However, caution is needed if the index keep pulling away and is more than 6% above its 28 week moving average. 

As long term interest rate rises, the dividend from utility and real estate stocks becomes less appealing to investors. Several trading signals occurs in our model portfolios to move out of utility and real estate funds due to this reason.  

Most mutual funds also distribute year-end dividend during this period, and we expected higher volatility in fund rankings due not to market volatility but to data availability and updates.