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 iETF model portfolio: Sell EWO, Buy EWZ.
Trading signal occurs in RSP model portfolio: Sell ARGFX, Buy FCNTX.
Trading signal occurs in FEMKX timing system: Sell FEMKX, Buy CASH.
Stocks ended the week lower in the quiet trading week. Small cap growth stocks further underperformed its large cap counterparts. This past week was the unofficial kick-off of the second quarter company earning reporting season. Additional trading volatility is expected in the next couple of weeks as usual. For the week, S&P 500 index went down 0.97% to 4327, Dow Jones Industrial Average lost 0.52%, and the technology laden NASDAQ composite index decreased 1.87%.
From weekly chart of S&P 500 index, the index is still trending upwards following the slope of its 28 week EMA and the momentum is still at an elevated level. The second chart below shows the weekly price patter of FEMKX which saw its momentum falling sharply in the past two weeks and caused a sell trading signal in the FEMKX timing system. FEMKX behaves more like small cap growth index (e.g. Russel 2000 index) than the large cap S&P 500 index. We have seen this kind of divergent between S&P 500 index and FEMKX in 2018. At the time, S&P 500 index continued to march higher for 6 more months before plunging sharply while FEMKX slowly trended lower at the same time. With this FEMKX sell signal, caution is warranted and adjusting portfolio allocation to reduce risk level is recommended.
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| Weekly chart of S&P 500 index |
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| Weekly chart of FEMKX |
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