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

REITs and utilities are rated overweight and consumer discretionary, energy and technology are underweight.

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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