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 EWL, Buy EWN
After two consecutive down weeks, stocks recovered a bit with energy stocks outperformed the market. Stocks plunged Monday in fear of the ripple effects to the global banking systems from the possible default of China's second largest real estate developer, Evergrande. Stocks regained most of the loss Wednesday as news about intervention from Chinese government surfaced. For the week, S&P 500 index went up 0.51% to 4451, Dow Jones Industrial Average gained 0.62%, and the technology laden NASDAQ composite index increased 0.02%.
A hammer candle stick pattern was formed this week in the weekly chart of S&P 500 index. The weekly candle has a short positive body and a long lower wick which almost touches the 28 week moving average. The index closed the week above the short term support of 4400 level that we have talked about in our last blog. As long as the index stays above its 28 week moving average, the up-trend is still intact. We expect to see a couple more weeks of side way consolidation and continuation of the up trend afterwards, if the index can mange to stay above the trend line.
Two trading signals occurs in our model portfolios due to recent sector rotation and momentum ranking changes. The position in the HSA model portfolio is moving from real estate fund, NBRIX, to large cap growth fund, MLAIX after holding for 95 day. In the iETF model portfolio, the holding is changed from EWL to EWN after holding for 32 days. Please see rankings tables and trading logs for more detail.
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| Weekly chart of S&P 500 index |
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