Fund Rankings Update, 5/15/2020

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.

Trading signal occurs in SELECT model portfolio: Sell Cash, Buy FSPHX.

Trading signal occurs in FEMKX timing system: Sell Cash, Buy FEMKX.

Stocks declined for the week as Fed Chair warned of  lasting damage and significant downside risk to the economy due to the corona virus pandemics.  Worries about resurgence of US-China trade war also dampened investors' sentiment.  For the week, S&P 500 index went down 2.3% to 2863, Dow Jones Industrial Average gained 2.65% , and the technology laden NASDAQ composite index decrease 1.17%. 

S&P 500 index failed to close above its 28 week EMA resistance for the second week and completed the first leg of "W" bottom formation in the weekly chart. Only time will tell if we will get a "V" shape bottom or "W" shape bottom. The longer the index stays below the 28 week EMA the more likely it will be a "W" shape recovery just like what happened in October, 2019 - December , 2019 period. At that time, S&P 500 index struggled for 9 weeks failing to break above its 28 week EMA resistance and plunged lower before recovering. 

Two trading signals were issued in the model portfolios this week. Following the trading pattern in sETF last week, SELECT model portfolio changed its position this week buying into health care sector fund, FSPHX. A trading signal also occurred in FEMKX timing system as its momentum indicator, STO[15,1], went up above 50.  FEMKX timing system has been reliable in catching the intermediate market trend in the past and we will see how it pans out under this extreme market condition. As stock markets are still under escalated volatility, I would advise readers to trade in small sizes to reduce the risk. 

Weekly chart of S&P 500 index

Weekly chart of FEMKX