2 of 11 S&P Sector ETFs Are Rated Overweight, 3 Are Underweight

Richard1944

REITs and utilities are rated overweight. Materials, industrial, consumer staples, financial, healthcare and transportation are Equal-Weight. Consumer discretionary, energy and technology are underweight.

My Warning Continues: Reduce holdings in the stock market by at least 50%. Whenever there’s a rally use that strength to reduce holdings.

Establishing weightings based up their weekly charts is the backbone of an Asset Allocation Model.

· An Underweight Sector Has A Negative Weekly Chart. A negative weekly chart shows the ETF below its five-week modified moving average with declining or oversold weekly momentum (12x3x3 weekly slow stochastic).

· An Equal-Weight Sector Has A Neutral Weekly Chart. A neutral weekly chart shows the ETF below its five-week modified moving average with rising weekly momentum, or above its five-week modified moving average with declining weekly momentum.

· An Overweight Sector Has A Positive Weekly Chart. A positive weekly chart shows the ETF above its five-week modified moving average with rising or overbought weekly momentum.

SPDR Dow Jones REIT ETF (RWR) – Overweight

This ETF is now above its 200-week simple moving average of $91.92. The weekly chart remains positive with the ETF above its five-week modified moving average at $92.41. My quarterly value level is $87.39 with my monthly risky level at $99.93.

Materials Sector SPDR Fund(XLB) – Equal-Weight

This ETF is well above its 200-week simple moving average at $51.54 after setting a new 2018 low of $50.09 on Oct. 25. The weekly chart is now neutral with the ETF below its five-week MMA of $54.85. My semiannual pivot at $54.12 was crossed again last week. My annual and quarterly risky levels are $59.99 and $64.28, respectively.

Industrial Select Sector SPDR Fund(XLI) – Equal-Weight

This ETF has a neutral weekly chart with the ETF below its five-week MMA of $72.66. The ETF set its 2018 low of $66.99 on Oct. 29. The ETF is below my semiannual pivot of $72.37 with my annual and quarterly risky levels at $79.31 and $84.90, respectively.

Consumer Discretionary Select Sector SPDR Fund(XLY) – Underweight

This ETF has a negative weekly chart with the ETF below its five-week MMA of $107.73. XLY is below my semiannual and annual pivots of $109.52 and $107.96, respectively, and my monthly risky level of $112.87.

Consumer Staples Select Sector SPDR Fund(XLP) – Equal-Weight

This ETF has a neutral weekly chart with the ETF below its five-week MMA of $54.89. This ETF held its 200-week SMA of $52.49 during the week of Oct. 12. My monthly value level is $52.27 with my quarterly pivot of $54.37 and my semiannual and annual risky levels of $59.45 and $63.34, respectively.

Energy Select Sector SPDR Fund(XLE) – Underweight

This ETF has a negative weekly chart with the ETF below its five-week MMA of $69.74 and is below its 200-week SMA of $69.74. XLE is below my quarterly pivot at $72.88 with monthly and annual risky levels of $78.77 and $88.91, respectively. This ETF set a new 2018 low of $63.91 on Nov. 23. My quarterly value level lags at $43.74.

Financial Select Sector SPDR Fund(XLF) – Equal-Weight

This ETF has a neutral weekly chart with the ETF below its five-week MMA of $26.75. This ETF is below on my annual pivot at $26.77. My semiannual pivot is $27.49 and my quarterly risky level at $32.86. The June 2007 high is $30.83. This ETF set a fresh 2018 low of $25.03 on Oct. 26.

Utilities Select Sector SPDR Fund(XLU) – Overweight

This ETF has a positive weekly chart with the ETF above its five-week MMA of $53.97. The 200-week SMA is $49.19. XLU is between my semiannual, quarterly and annual pivots at $53.86, $54.42 and $54.46, respectively, with my monthly risky level at $55.68.

Health Care Select Sector SPDR Fund(XLV) – Equal-Weight

This ETF has a neutral weekly chart with the ETF below its five-week MMA of $91.06. My annual and quarterly pivots are $88.09 and $86.50, respectively, with my semiannual and monthly risky levels at $92.80 and $91.23, respectively. My monthly pivot is $90.04.

Technology Select Sector SPDR Fund(XLK) – Underweight

This ETF has a negative weekly chart with the ETF below its five-week MMA of $69.11. My annual value level is $60.55 with a semiannual pivot at $67.19 and my monthly and quarterly risky levels of $71.99 and $77.77, respectively.

iShares Transportation Average ETF (IYT) – Equal-Weight

This ETF has a neutral weekly chart with the ETF below its five-week MMA at $190.72. My semiannual value level is $181.19 with my monthly and annual risky levels at $196.89 and $204.61, respectively. This ETF set its 2018 low of $175.50 on Oct. 29.

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