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2017 was a great year for investor. The S&P 500 has 12 positive monthly gains, which i believe is a first. For me, the story of the year has to be the VIX. on November 3, the VIX slid to its lowest point of all time, and remain under 10 for quite some time throughout the year. Let hope for more volatility in 2018.
The SPY end the year with total return of 21.70 %. Currently, its price remain will above its 200 ma
The number of stocks in the S&P 100 is at 78.84 %, up from 75 %. Remember, anything above 65 % is bullish.
The unemployment rate is 4.10 and below its 12 month moving average, indicating that there's no sigh of recession for the U.S economy.
For the U.S sector, Technology (XLK) remains the best sector to be invested. For 2018 , Im introducing a very simple momentum system to track the best sector to invest. The rules are quite simple. Every month we buy the sector ETF that meets the following criteria:
- CLOSE > 100 days moving average
- SPY > 10 months moving average
- Rank the ETFs based on their quarterly return
The result for this strategy from 2009 are quite remarkable.
We'll track this system through the year and analyze its results later on.
I wish you all the best in 2018, and expect a premium newsletter in February.
What a year 2017 has been. For the very first time, the S&P 500 ended every month with a positive gain. The last time it almost archived that was in 2006 , where 11 out 12 months were positive.
Will this party continue in 2018 ? we'll soon find out.