YCP ETF and Mutual Fund Rankings: May 2021

Fund Rankings Update, 5/28/2021

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.

Major indices ended the week broadly higher with growth stocks outperformed value stock. For the week, S&P 500 index went up 1.16% to 4204, Dow Jones Industrial Average gained 0.94%, and the technology laden NASDAQ composite index increased 2.06%.

S&P 500 index continued its side way consolidation while NASDAQ composite index continue its rebound after successfully tested the 28 week EMA as shown in the weekly charts below. Our technical outlook remains cautiously optimistic. As long as NASDAQ composite index does not fall below its 28 week EMA, we will see it slowly come back to resume its uptrend and carry S&P 500 index along with it.

Weekly Chart of S&P 500 index

Weekly chart of NASDAQ composite index

Fund Rankings Update, 5/21/2021

Major indices ended the week mixed with lingering worries about rising interests but supported by strength of economy rebound. For the week, S&P 500 index went down 0.43% to 4155, Dow Jones Industrial Average lost 0.51%, while the technology laden NASDAQ composite index increased 0.31%.

S&P 500 closed the week a bit lower than where it began for another week of side way consolidation as observed in the weekly chart below. For NASDAQ composite index, this is the second week it successfully tested the 28 week EMA as shown in its weekly chart. The 28 week EMA has been a very strong support for NASDAQ composite index in the past. The index has held at this EMA support in November 2020, March 2021 and now. If NASDAQ composite index does not fall below its 28 EMA, we will see it slowly come back and resume its uptrend that was disrupted since mid-February. The rise of Nasdaq composite will also carry S&P 500 index along with it in our opinion. Interestingly, our FEMKX timing system, which has been a reliable market timing indicator, has been out of market since March 8 and has stayed on the sideline since as shown in the trading log page. At this stage, we have to patiently wait for the market development and take action accordingly.

Weekly Chart of S&P 500 index

Weekly chart of NASDAQ composite index

Fund Rankings Update, 5/14/2021

Trading signal occurs in ETF model portfolio: Sell IJS, Buy IYT

Major indices especially the interest rate sensitive NASDAQ composite index plunged this past Wednesday after inflation data released by Labor Department showing Consumer prices jumped 0.9 % in April and consumer prices index rose 4.2%, much higher than the 3.6% expected by economists. NASDAQ went down to 1300, 9% below its previous high and Dow Jones Industrial Average plunged more than 600 points on Wednesday. Stocks recovered partially Thursday and Friday, helped by the consensus that the spike in inflation data likely to be temporary. For the week, S&P 500 index went down 1.39% to 4173, Dow Jones Industrial Average lost 1.14%, while the technology laden NASDAQ composite index decreased 2.34%.

S&P 500 index continued its side way consolidation around 4200, while NASDAQ composite index went down to test its 28 week moving average as shown in the weekly charts below. With momentum indicator of the NASDAQ composite index falling below 80 and heading downward, tech stocks seem to have a few more weeks of consolidation to go, which will cause the S&P 500 index to continue its side way consolidation for another few weeks in our opinion.

Due to momentum change, a trading signal is issued this week in ETF model portfolio to move out of IJS and buy into IYT. The model portfolio has help IJS for 105 days with a gain of 22%.

Weekly chart of S&P 500 index

Weekly chart of NASDAQ composite index

Fund Rankings Update, 5/7/2021

Worries about the economy "overheating" was calmed down somehow by the sharply less than expected job growth report. US economy only added 266 thousand jobs in April way below the one million jobs expected by the economists. The disappointing job report helped to push the rising treasury yields down and boosted the beaten down tech stocks higher. Value stocks outperformed growth stocks while tech stocks and consumer discretionary stocks underperformed despite strong quarterly earning reports. For the week, S&P 500 index went up 1.23% to 4232, Dow Jones Industrial Average gained 2.67%, while the technology laden NASDAQ composite index decreased 1.51%.

S&P 500 index continued its steady climb and firmly closed above 4200. Investors are rotating out of growth stocks and move into value sectors due to seasonality (Sell in May and Go AWAY). Our cautiously positive outlook remains the same as the past few weeks.

Weekly chart of S&P 500 index

Fund Rankings Update, 4/30/2021

Major stock indices ended flat again this week. The positive sentiment due to economy rebound and strong quarterly company earnings was offset by concern about rising interest rate. For the week, S&P 500 index went up 0.02% to 4181, Dow Jones Industrial Average lost 0.5%, and the technology laden NASDAQ composite index decreased 0.39%.

S&P 500 index consolidated horizontally for the second week. This staircase arise is the preferable price movement that we would like to see for sustainable advance. Our cautiously positive outlook remains the same as last week.

Weekly chart of S&P 500 index