Trading signal occurs in ETF model portfolio: Sell IBB, Buy IGV
Major indices ended the week mixed with tech stocks rebounded strongly from last week due to strong quarterly earnings from Apple, Amazon.com and Facebook. Economic data released at the beginning of the week weighed in on investor sentiment as initial estimate of 2nd quarter GDP showed whopping 33% contraction and a pick-up in weekly jobless claims. Stalling of the new stimulus package at the congress also pushed general stocks down. For the week, S&P 500 index went up 1.73% to 3271, Dow Jones Industrial Average lost 0.16% , while the technology laden NASDAQ composite index increased 3.69%.
S&P 500 index continued to move side way for another week. The weekly range of the index is the same as last week, and the high of of the week did not break the high of the previous week. S&P 500 index is 7.3% above its 28 week moving average and caution is warranted if the index gets too much ahead of itself.
A trading signals occurs in ETF model portfolio this week as IBB continues to fall in the ETF momentum ranking table. IBB is replaced with Goldman Sachs Software Sector EFT, IGV.
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