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.
Stocks rebounded on the optimism for stimulus package, increasing vaccination for the public and declining Codv-19 cases. The short squeeze phenomenon for a handful of targeted stocks, like Gamestop and AMC, also subsided allowing investors to turn their attention back to "traditional stocks". On the sector front, energy stocks outperformed while healthcare lagged behind. For the week, S&P 500 index went up 4.25% to 3886, Dow Jones Industrial Average gained 3.89%, and the technology laden NASDAQ composite index increased 6.01%.
Price volatility of S&P 500 index increased for the second week as the index approaching 3900. While the index reaching the new high, its momentum indicator STO[15, 1] fell lower as shown in the weekly chart below. The weekly price pattern of the index looks very similar to the pattern in early 2020 before the sharp plunge in mid February. Although we don't expect a market crash this time around, the high valuation coupled with waning momentum do give us a reason for concern.
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| Weekly chart of S&P 500 index |
1 comment:
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