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 RSP model portfolio: Sell FDGRX, Buy ARGFX
Stocks advanced broadly higher this week as treasury bond yields retreating and pricing data showing inflation is under control. Investors' sentiment were also boosted by lower than expected weekly jobless claim and the 1.9 Trillion Codv-19 relief package being singed into law by President Biden. On the sector front, consumer discretionary and real estate stocks outperformed the general markets, and small caps extended their leadership over the large caps. For the week, S&P 500 index went up 2.64% to 3943, Dow
Jones Industrial Average gained 4.07%, and the technology laden
NASDAQ composite index increased 3.09%.
Last week, S&P 500 index closed the week with an indecision candle formation. This week, the index advanced higher closing near the record high of 3950. The behavior of the index next week is very important in determining its intermediate term direction. If the S&P 500 index breaks and closes above the 3950 resistance next week, we will see a push toward 4000 and above. If the index failed to break and close above 3950, we see a bearish double top chart formation and a more severe correction down to 3500 ahead.
After FEMKX timing system issuing a trading signal to move to cash
position last week, the RSP model portfolio has signaled a position shift this week: Sell FDGRX, and buy ARGFX due to momentum ranking changes. Small cap stocks have been strong since the beginning of 2021. With the recent correction in tech sectors and growth stocks, the momentum ranking of FDGRX has fallen below the threshold and is replaced with the current number one ranked and small cap oriented fund, ARGFX. We have held FDGRX for 280 days with a gain of 47.6%.
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| Weekly chart of S&P 500 index |
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