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 HSA model portfolio: Sell MLAIX, Buy VFIAX
Stocks started the firs week of the year with a loss. Interest rate sensitive technology sectors endured the hardest hit by the release Fed's December meeting minutes on Wednesday, which revealed Fed's hawkish stance in making more aggressive and faster rate hikes this year and the discussion of reducing its balance sheet further tightening the monetary policy. For the week, S&P 500 index went down 1.87% to 4677, Dow Jones Industrial Average lost 0.29%, and the technology laden NASDAQ composite index decreased 4.53%.
S&P 500 index continued its horizontal consolidation as shown in the weekly chart below for the ninth week since beginning of November 2021. While S&P 500 index goes side way, the internal sectors are experiencing heavy rotation due to expectation of high inflation and interest hikes. Investors have been rotating out of the last year's high flying tech sectors and moved into energy and finance sectors. We may see more consolidation coming our way when the first rate hike realizes. At that time, we will evaluate the price action and see which direction the index want to take us.
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| Weekly chart of S&P 500 index |
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