Trading signal occurs in sETF model portfolio: Sell IBB, Buy ITB
Trading signal occurs in iETF model portfolio: Sell IOO, Buy EWD
Stocks went down modestly with technology sectors leading the retreat. Increase in weekly jobless claim and escalation of US-China friction raised worries about the economy recovery. For the week, S&P 500 index went down 0.28% to 3215, Dow Jones Industrial Average lost 0.76% , while the technology laden NASDAQ composite index decreased 1.33%.
S&P 500 index continued to move side way for another week. Even with the side way movement, the index is 6.1% above its 28 week moving average. In the past, a pull back or correction happened after the index is more than 5.5% above its tend line. The best scenario going forward is for the index to move side way and waiting for the tend line to catch up, while the worst scenario is for the index to keep moving higher and finally collapses severely like what has happened in March.
Two trading signals occurs in our model portfolios this week due to momentum ranking changes. IBB is replaced with ITB in sETF model portfolio as its average momentum index fell below 7th rank, and similarly IOO in iETF model portfolio is replaced with EWD.
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| Weekly chart of S&P 500 index |
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