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 SELECT model portfolio: Sell FSESX, Buy FSCSX.
Trading signal occurs in ETF model portfolio: Sell IYE, Buy IYW.
Trading signal occurs in sEFT timing system: Sell IEO, Buy ICF.
Stocks declined sharply Monday as fear of the spread of delta COVID-19 variant prevailed. However, stocks climbed back the rest of the week to reach another record high encouraged by positive company earnings and higher existing home sales. Big tech stocks led the way for the fifth weeks while energy sectors lagged behind. For the week, S&P 500 index went up 1.96% to 4411, Dow Jones Industrial Average gained 1.08%, and the technology laden NASDAQ composite index increased 2.84%.
S&P 500 index continued to advance higher following its up-trending slope since November 2020. The index is 7.9% above its 28 week moving average and have been in this range for sometime. Although this deviation is greater than the historic norm, its price pattern has been very consistent without any large parabolic move. Without any foreseeable black swan event, we think the index will continue its current pattern moving higher with some fluctuation around its trend line.
The comeback of technology sectors and the weakness of energy sectors have triggered the trading signals in the past three weeks. Three trading signals were issued in the model portfolios this week. Together with the three signals last week and the one before, seven out of our eight model portfolios have changed their positions due to sector rotations. Hopefully the momentum of the tech sectors can have more staying power to keep the up trend longer to improve the performance of the model portfolios.
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| Weekly chart of S&P 500 index |
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