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 HSA model portfolio: Sell MLAIX, Buy CLSPX.
Trading signal occurs in sETF model portfolio: Sell ITB, Buy IYT.
With the encouraging vaccine effectiveness news announced from Pfizer, stocks went up sharply at the start of the week before settling down with a modest gain. The positive vaccine news boosted the performance of traveling, leisure sectors, and energy sectors as investors rotating out of the "stay-at-home" stocks. rebounded higher this past week amid post-election rally. For the week, S&P 500 index went up 2.16% to 3585, Dow Jones Industrial Average gained 4.08% , while the technology laden NASDAQ composite index decreased 0.55%.
S&P 500 broke through the 3500 resistance, climbed above 3600 right out of the gate and closed at 3585. The index is 8.8% above its 28 week EMA in the weekly chart more than the 7% last week. In the weekly chart, the momentum indicator, STO, shows a lower high pattern as its momentum is waning while the index is showing a higher high. The divergence between momentum and price movement in addition to the high deviation between the index and its trend line is a sign for caution going forward.
Trading signals were issued in the HSA and sETF model portfolio due to the recent sector rotation. In HSA model portfolio, mid-cap growth fund, CLSPX, took over the large cap fund, MLAIX. We have held MLAIX for 161 days with a profit of 19%. In sETF model portfolio, home construction sector fund, IYB, is replaced with transport index fund, IYT. we have held IYB for 109 days with a profit of 7%.
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| Weekly chart of S&P 500 index |
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