Overweight Materials, Energy, Utilities And Transports

Richard1944

The consumer discretionary sector is outperforming year to date thanks to the 21.2% weighting of Amazon.com (AMZN). The consumer staples sector set a new 2018 low on Friday thanks to weakness to the 11.3% weighting of Proctor & Gamble (PG).

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) – Equal-Weight

I do not have a value level which is a warning. Reduce holdings on strength to my monthly and quarterly risky levels of $86.33 and $90.16, respectively.

Materials Sector SPDR Fund (XLB) – Overweight

Buy weakness to my semiannual value level of $56.21. Reduce holdings on strength to my annual, quarterly and monthly risky levels of $59.99, $62.13 and $62.56, respectively.

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

Buy weakness to my semiannual value level of $71.16. Reduce holdings on strength to my monthly, quarterly and annual risky levels of $79.72, $78.98 and $79.31, respectively.

Consumer Discretionary Select Sector SPDR Fund (XLY) – Equal-Weight

Buy weakness to my semiannual value level of $97.61. Reduce holdings on strength to my monthly and annual risky levels of $104.54 and $107.96, respectively. In-between is my quarterly pivot at $100.55.

Consumer Staples Select Sector SPDR Fund (XLP) – Underweight

I do not show any value levels. Reduce holdings on strength to my monthly, quarterly, semiannual and annual risky levels of $53.84, $54.88, $60.75 and $63.34, respectively.

Energy Select Sector SPDR Fund (XLE) – Overweight

Buy weakness to my weekly and semiannual value levels of $68.74 and $59.88, respectively, and reduce holdings on strength to my quarterly and annual risky levels of $76.90 and $88.91, respectively. My monthly pivot is $70.52.

Financial Select Sector SPDR Fund (XLF) – Underweight

Buy weakness to my weekly and semiannual and annual pivots are $26.69 and $26.77, respectively, and reduce holdings on strength to my monthly and quarterly risky levels of $29.65 and $30.27, respectively. The June 2007 high is $30.83.

Utilities Select Sector SPDR Fund (XLU) – Overweight

Reduce holdings on strength to my monthly, quarterly, annual and semiannual risky levels of $52.02, $52.62, $54.46 and $58.60, respectively.

Health Care Select Sector SPDR Fund (XLV) – Underweight

I do not show any value levels. Reduce holdings on strength to my monthly, quarterly, annual and semiannual risky levels of $85.74, $86.35, $88.09 and $91.42, respectively.

Technology Select Sector SPDR Fund (XLK) – Underweight

Buy weakness to my semiannual and annual value levels of $61.66 and $60.55, respectively, and reduce holdings on strength to my quarterly and monthly risky levels of $67.07 and $70.97, respectively.

iShares Transportation Average ETF (IYT) – Overweight

I do not show any value levels. Reduce holdings on strength to my quarterly, monthly and annual risky levels of $195.90, $203.25 and $204.61, respectively. My semiannual pivot is $188.79.

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