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 SSPP model portfolio: Sell FDGRX, Buy FDVLX
Trading signal occurs in FEMKX timing system: Sell FEMKX, Buy CASH
Major indices ended the week mixed with lingering worries from investors about the rising Treasury yields. Value stocks outperformed the growth stocks and energy stocks led the sectors with higher energy prices. Interest rate sensitive tech stocks were were particular weak for a second week. For the week, S&P 500 index went up 0.81% to 3841, Dow Jones Industrial Average gained 1.82%, while the technology laden NASDAQ composite index decreased 2.06%.
S&P 500 index closed this week with an indecision Doji candle stick pattern on the weekly chart. The index opened the week strong on Monday, went up above 3900 but sold off soon for the next three days, reached the low of 3723, climbed back above its 50 day moving average and closed the week at about where it began. This correction has hit harder on technology sectors than the general markets. As one can see in the weekly chart of NASDAQ composite index, the $COMPQ has reached its 28 week moving average at 12920 which is 9.1% below its high of 14125, while the S&P 500 index has not reached it 28 week EMA yet, and has only corrected 5.7% at the low of 3723. We are third week into the correction. If the past pattern is of any indication, the end of correction may end in a week or two.
Two trading signals were issued in the model portfolios due the recent market correction. In SSPP model portfolio, the position has been moved from Growth Company fund, FDGRX to a more defensive Valued fund, FDVLX, and the FEMKX timing system has issued a trading signal to move to cash position due to the its trading rule. FEMKX timing system has been a very reliable indicator for the general market direction. The signal has also validated our cautious stance on the market since the end of 2020. Once on the sideline, the next thing is to wait patiently for the the market to consolidate and reenter at the proper time.
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| Weekly chart of NASDAQ Composite Index |
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| Weekly chart of S&P 500 index |
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