Fund Rankings Update, 2/28/2020

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.

Investors grew panicking as outbreak of corona virus in China spread globally to South Korea, Iran, Italy and other countries. All major indices plunged to correction territory with continuous selling every day.  For the week, S&P 500 index went down 11.49% to 2954, Dow Jones Industrial Average lost 12.36% , and the technology laden NASDAQ composite index decreased 10.54%. 

What goes up must come down. We started to caution readers about market pull-back in December 2019 as S&P 500 index was way too much above its 28 week moving average by historical standard.  It was also discussed in the blog that the pull back can be quick and intense. In addition, our FEMKX timing system issued a sell signal to move money into cash position on blog dated January 31, in which it was mentioned that the FEMKX system has been very consistent in telling the market turning points. Investor sentiment tends to over shoot both ways. S&P 500 index is currently 5.8% below its 28 week moving average, and stands at the 2950 support level. We will see if the index can successfully consolidate at this level or wend down further next week. 

By design, our momentum ranking systems do not react that fast to a one-week event, and that may be a good thing in this market condition. All our model portfolios stay with the same holdings while waiting for the market development in the next few weeks. Diligently following the trading rule is the best way to navigate out of this severe market uncertainty. 

Weekly chart of S&P 500 index