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 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%.
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| Weekly chart of S&P 500 index |
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| Weekly chart of NASDAQ composite index |
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