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 FSRPX, Buy FSAVX
Stocks went up the third week with the best weekly gain since July. The advancement was largely driven by the optimism for new round of economic stimulus and the treatment for Codv-19. Small cap, utilities, and energy stocks outperformed the market while communication sectors lagged behind. For the week, S&P 500 index went up 3.84% to 3477, Dow Jones Industrial Average gained 3.27% , while the technology laden NASDAQ composite index increased 4.56%.
As seen in the weekly chart below, S&P 500 index broke through the 3400 resistance without hesitation this past week. S&P 500 index started this uptrend in mid March recovering from the sharp plunge due to the pandemic. It climbed above the 28 week EMA and May and have since retested the supporting trendline twice, first in June and recently in September. With this strong upward advancement, and the turning of its momentum indicator, STO, we believe the index is heading toward another all time high.
A trading signal has been issued in our SELECT model portfolio to switch holding from retail sector fund, FSRPX, to automotive sector fund FSAVX. As economic recovery enters difference phase in the growth cycle, the automotive and construction sector funds have moved up the ranks in the momentum ranking table in recent months. We have held FSRPX for 109 days with a gain of 19.7% gain.
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| Weekly chart of S&P 500 index |
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