Overweight REITs, Consumer Discretionary, Energy, Utilities And Technology

Richard1944

The consumer discretionary sector is outperforming year to date thanks to the 21.66% weighting of Amazon.com (AMZN). The consumer staples sector set a new 2018 low last Thursday thanks to weakness in the highest 11.75% 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) – Overweight

Buy weakness to my monthly value level at $86.09 and reduce holdings on strength to my quarterly risky level of $90.16.

Materials Sector SPDR Fund (XLB) – Equal-Weight

Buy weakness to my semiannual value level of $56.21 and reduce holdings on strength to my annual, quarterly and monthly risky levels of $59.99, $62.13 and $62.58, respectively.

Industrial Select Sector SPDR Fund (XLI) – Underweight

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

Consumer Discretionary Select Sector SPDR Fund (XLY) – Overweight

Buy weakness to my quarterly and semiannual value levels of $100.55 and $97.61, respectively, and reduce holdings on strength to my annual risky level of $107.96.

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 $53.02, $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 $72.97 and $59.88, respectively, and reduce holdings on strength to my quarterly, monthly and annual risky levels of $76.90, $78.00 and $88.91, respectively.

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

Buy weakness to my semiannual and annual pivots are $26.69 and $26.77, respectively, and reduce holdings on strength to my quarterly and monthly risky levels of $30.27 and $30.63, respectively. The June 2007 high of $30.83.

Utilities Select Sector SPDR Fund (XLU) – Overweight

Buy weakness to my monthly value level of $49.74 and reduce holdings on strength to my quarterly, annual and semiannual risky levels of $52.62, $54.46 and $58.60, respectively.

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

Buy weakness to my weekly value level of $77.15 and reduce holdings on strength to my monthly, quarterly, annual and semiannual risky levels of $84.74, $86.35, $88.09 and $91.42, respectively.

Technology Select Sector SPDR Fund (XLK) – Overweight

Buy weakness to my semiannual and annual value levels of $61.66 and $60.55, respectively, and reduce holdings on strength to my monthly risky level of $70.68. My quarterly pivot is $67.07.

iShares Transportation Average ETF (IYT) – Equal-Weight

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

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