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 iETF, Sell EWD, Buy EWY.
Prospect of new economic stimulus package coupled with positive vaccine news for approval and availability pushed all major indices further into record territories. For the week, S&P 500 index went up 1.67% to 3699, Dow Jones Industrial Average gained 1.03% , and the technology laden NASDAQ composite index increased 2.12%.
S&P 500 index broke above the top of flag formation and closed at 3699, one point below the psychological resistance of 3700. As it broke the bull flag pattern, the index looks to go higher in the next few weeks with positive seasonality. However, it is prudent to start reducing the market exposure as the index is 10.1% above its 28 week EMA. Looking back in August and February, S&P 500 index were 13.6% and 7.6% above its 28 week EMA right before the correction respectively. Remember that the index always come back down to its average after extended run. Investors should prepare for the coming corrections/consolidations when the index is more than 6% above its 28 week moving average.
A trading signal occurs in our iETF model portfolio this week. Momentum ranking of our current holding, EWD has been pushed below the number 7 threshold and warrants a position change. EWD (Sweden index fund) will be replaced with the number one ranked fund, EWY (Korea index fund).
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| Weekly chart of S&P 500 index |
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