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 42626, Buy FDGRX
Major indices continued its advance with Fed's announcement to skip the interest rate hike on Wednesday. Tamed inflation data released over the week also boded well for investment sentiment. Consumer price index increased 4.0% year over year in May which is much lower than the 4.9% in April, and the produce price index has declined 0.3% in May making it the fourth decline in the last 6 months. For the week, S&P 500 index went up 2.58% to 4409, Dow Jones Industrial Average gained 1.25%, and the technology laden NASDAQ composite index increased 3.25%.
S&P 500 has broken its 4300 resistance and closed solidly at 4409 this week. As the index is gaining momentum, we may see it reach the 4500-4600 level in the next couple weeks. However, the index, after five weeks of nonstop advance, is currently 7% above its 28 week EMA, and the odd of a pullback or consolidation is getting higher.
As growth stocks have come back into fashion and gaining momentum, a trading signal was issued in our RSP model portfolio this week to move portfolio holding from 42626 (SS WRLD DEV EXUS IDX) to FDGRX (FID GR CO POOL CL 3). The portfolio has held 42626 for 98 days with a gain of 7.46%.
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| Weekly chart of S&P 500 index |
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