YCP ETF and Mutual Fund Rankings: May 2022

Fund Rankings Update, 5/27/2022

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 RSP model portfolio: Sell 42635, Buy CONINC

After seven weeks of relentless selling, stocks finally rebounded strong encouraged by milder inflation data, softening but not recessionary economic news. While lowered outlook from Walmart and Target prompted the sell-off two weeks ago, the upbeat forecast from Macy and Nordstrom this past week more than made up the loss. For the week, S&P 500 index went up 6.58% to 4158, Dow Jones Industrial Average gained 6.24%, and the technology laden NASDAQ composite index increased 6.84%.

S&P 500 rebounded and closed firstly above its high of the past two weeks and secondly above the 4000-4100 level. The strong rebound indicate the selling in the past seven weeks was over done and the index is trying to consolidate at a comfortable price level. From the weekly chart, there are two resistance levels ahead of the index: the 4200 level which used to be a strong support and the 28 week moving average which stood at 4300 currently. Going forward, these two resistance levels may converged into an even stronger resistance. We shall see.

A trading signal occurs this week in RSP model portfolio to sell DIVRSFIED REAL ASSET fund and buy CONSERV INCOME FUND. The strong selling in the last seven weeks prompted the portfolio to move totally to cash position after one month hold in the conservative real estate fund.

Weekly chart of S&P 500 Index

Fund Rankings Update, 5/20/2022

Stocks, under relentless selling pressure, declined for the seventh week. Disappointing earnings and revenues from major retailers prompted investors' fear of economic recession as consumer pulling back on their spending. For the week, S&P 500 index went down 3.05% to 39013, Dow Jones Industrial Average lost 2.9%, and the technology laden NASDAQ composite index decreased 3.82%.

S&P 500 reached 3800 at its low point this week with momentum indicator stayed in the over-sold region. The index is 19% below its high of 4818, 1% above the official definition of bear market. As the index closed below 4000 support level with weakening momentum, we likely won't see a trend reversal until the index finds a level to consolidate and build a double bottom or triple bottom.

Weekly chart of S&P 500 index

Fund Rankings Update, 5/13/2022

Trading signal occurs in SSPP model portfolio: Sell FICDX, Buy FIUIX

Stocks declined for the sixth week, the longest stretch since 2001. Investors were worried about Fed's accelerating pace of increasing interest rates may cause a recession instead of a soft landing. For the week, S&P 500 index went down 2.41% to 4023, Dow Jones Industrial Average lost 2.14%, and the technology laden NASDAQ composite index decreased 2.8%.

S&P 500 index gapped down this week, and at a lowest point on Thursday was nearly 18% below its high of 4818 reached in the beginning of the year. The index managed to climb back Friday, closed above 4000 and formed a hammer candle stick pattern for the week. If the index can consolidate and build a bottom at this level, we may see the beginning of the end. However, under current unfavorable interest rate and high inflation environment, it may take a long time for the index to get back to its upward trajectory.

Weekly chart of S&P 500 index

Fund Rankings Update, 5/6/2022

Stocks declined for the fifth week as Fed raised the interest rate 0.5% on Wednesday to fight the heighten inflation. For the week, S&P 500 index went down 0.21% to 4123, Dow Jones Industrial Average lost 0.24%, and the technology laden NASDAQ composite index decreased 1.54%.

As S&P 500 index could not hold the 4200 support, the index looks to continue heading downward to the next support level at 4000. We are entering the month of May which is a seasonally weak month of the year with the adage: "Sell in May and go away." With the current market condition, it may be more true this year than the last.

Weekly chart of S&P 500 index