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Materials, Industrial, Financial, Healthcare, Technology Lead 11 Sector ETFs

The S&P 500 is divided into 11 sectors and each sector can be traded using its own exchange-traded fund.

The technology sector ETF remains the outperformer with a gain of 26.3% and in bull market territory 33.4% above its post-election low. The weekly chart remains positive but overbought, and set an all-time intraday high of $61.17 on Oct. 20.

The healthcare sector ETF remains in second place up 21.7% year to date and in bull market territory up 24% since its post-election low. The post-election high of $83.95 was set on Oct. 20.

The finance sector is the strongest sector since the election with a bull market gain of 34.6%. The financial ETF is below its all-time intraday high of $30.83 set in June 2007. The post-election high of $26.66 was set on Oct. 20.

The materials and industrial sector ETFs are gaining momentum with new all-time highs set on Oct. 20 at $58.74 and $72.96, respectively.

The only sector ETF in correction territory remains the energy sector ETF, down 13.6% since its post-election high of $78.45 set on Dec. 12. Its weekly chart remains positive.

The weekly charts for the retail ETFs show consumer discretionary positive and consumer staples negative. Consumer spending drives about 70% of the economy.

SPDR Dow Jones REIT ETF (RWR)

The weekly chart for the REIT Sector ETF ($93.01 on Oct. 20) has a neutral weekly chart with the ETF just below its five-week modified moving average of $93.18. The 200-week simple moving average is the “reversion to the mean” at $89.59, last tested during the week of Feb. 12, 2016 when the average was $81.06. The 12x3x3 weekly slow stochastic reading rose to 58.40 last week up from 57.41 on Oct. 13.

Investment Strategy: Buy weakness to 200-week simple moving average of $89.59 and rising each week. My monthly pivot is $93.40. Sell strength to my quarterly risky level of $102.10.

Materials Sector SPDR Fund (XLB)

Courtesy of MetaStock Xenith

The weekly chart for the Materials Sector ETF ($58.74 on Oct. 20) is positive but overbought with the ETF above its five-week modified moving average of $56.92. The 200-week simple moving average is the “reversion to the mean” at $48.56, last tested during the week of July 1, 2016 when the average was $44.51. The 12x3x3 weekly slow stochastic reading rose to 90.47 last week up from 86.66 on Oct. 13 rising further above the overbought threshold of 80.00. When above 90.00 the ETF becomes an inflating parabolic bubble.

Investment Strategy: Buy weakness to my semiannual and monthly value levels of $56.69 and $56.47, respectively. Sell strength to my quarterly and annual risky levels are $60.49 and $61.72, respectively.

Industrial Select Sector SPDR Fund (XLI)

Courtesy of MetaStock Xenith

The weekly chart for the Industrial Sector ETF ($72.96 on Oct. 20) is positive but overbought with the ETF above its five-week modified moving average of $70.80. The 200-week simple moving average is the “reversion to the mean” at $57.42, last tested during the week of Jan. 22, 2016 when the average was $47.92. The 12x3x3 weekly slow stochastic reading rose to 89.47 last week up from 86.11 on Oct. 13 moving further above the overbought threshold of 80.00.

Investment Strategy: Buy weakness to my annual pivot at $70.05. My semiannual pivot is $71.83. Sell strength to my quarterly risky level of $74.61.

Consumer Discretionary Select Sector SPDR Fund (XLY)

The weekly chart for the Consumer Discretionary Sector ETF ($91.36 on Oct. 20) is positive with the ETF above its five-week modified moving average of $90.54. The 200-week simple moving average is the “reversion to the mean” at $76.99. The 12x3x3 weekly slow stochastic reading rose to 60.37 last week up from 50.49 on Oct. 13.

Investment Strategy: Sell strength to my quarterly, monthly, semiannual and annual risky levels of $93.41, $94.33, $96.76 and $97.00, respectively.

Consumer Staples Select Sector SPDR Fund (XLP)

The weekly chart for the Consumer Staples Sector ETF ($53.90 on Oct. 20) is negative with the ETF below its five-week modified moving average of $54.40. The 200-week simple moving average is the ‘reversion to the mean” at $49.96. The 12x3x3 weekly slow stochastic reading declined to 22.49 last week down from 23.53 on Oct. 13.

Investment Strategy: Buy weakness to my annual value level of $46.91. Sell strength to my monthly, annual, quarterly and semiannual risky levels of $57.28, $58.03, $59.72 and $60.85, respectively.

Energy Select Sector SPDR Fund (XLE)

The weekly chart for the Energy Sector ETF ($67.77 on Oct. 20) is positive but overbought with the ETF above its five-week modified moving average of $66.85. This ETF is below its 200-week simple moving average, or “reversion to the mean” of $74.66 last tested during the week of Dec. 16, when the average was $77.65. The 12x3x3 weekly slow stochastic reading rose to 81.12 last week up from 78.18 on Oct. 13 moving above the overbought threshold of 80.00.

Investment Strategy: Buy weakness to my semiannual and monthly value levels of $63.27 and $61.77, respectively. Sell strength to my quarterly risky level of $73.95.

Financial Select Sector SPDR Fund (XLF)

Courtesy of MetaStock Xenith

The weekly chart for the Financial Sector ETF ($26.64 on Oct. 20) is positive but overbought with the ETF above its five-week modified moving average of $25.69. The 200-week simple moving average is the “reversion to the mean” at $20.23, last tested during the week of July 1, 2016 when the average was $17.58. The 12x3x3 weekly slow stochastic reading rose to 85.53 last week up from 81.15 on Oct. 13 moving further above the overbought threshold of 80.00.

Investment Strategy: Buy weakness to my annual value level of $23.65, respectively. My semiannual, quarterly and monthly pivots are $25.60, $25.79 and $25.85, respectively. Sell strength to its June 2007 high of $30.83.

Utilities Select Sector SPDR Fund (XLU)

Courtesy of MetaStock Xenith

The weekly chart for the Utilities Sector ETF ($54.86 on Oct. 20) is neutral with the ETF above its five-week modified moving average of $54.07. The 200-week simple moving average is the “reversion to the mean” at $46.48. The 12x3x3 weekly slow stochastic reading declined to 54.28 last week down from 55.10 on Oct. 13.

Investment Strategy: Buy weakness to my annual value level of $50.72. Sell strength to my monthly, quarterly and semiannual risky levels of $56.35, $57.22 and $57.58, respectively.

Health Care Select Sector SPDR Fund (XLV)

Courtesy of MetaStock Xenith

The weekly chart for the Health Care Sector ETF ($83.88 on Oct. 20) is positive but overbought with the ETF above its five-week modified moving average of $82.00. The 200-week simple moving average is the “reversion to the mean” at $69.79. The 12x3x3 weekly slow stochastic reading rose to 82.36 last week up from 78.23 on Oct. 13.

Investment Strategy: Buy weakness to my annual value level of $78.09. My quarterly pivot is $82.58. Sell strength to my monthly and semiannual risky levels of $86.10 and $91.37, respectively.

Technology Select Sector SPDR Fund (XLK)

Courtesy of MetaStock Xenith

The weekly chart for the Technology Sector ETF ($61.10 on Oct. 20) is positive but overbought with the ETF above its five-week modified moving average of $59.33. The 200-week simple moving average is the “reversion to the mean” at $44.50, last tested during the flash crash of Aug. 24, 2015 when the average was $34.22. The 12x3x3 weekly slow stochastic reading rose to 94.37 last week up from 92.40 on Oct. 13 moving further above the overbought threshold of 80.00. When above 90.00 the ETF becomes an inflating parabolic bubble.

Investment Strategy: Buy weakness to my annual value level of $55.49. Sell strength to my quarterly, semiannual and monthly risky levels of $61.15, $61.48 and $62.25, respectively, and the first level was tested on Oct. 20.

iShares Transportation Average ETF (IYT)

Courtesy of MetaStock Xenith

The weekly chart for the Transportation Sector ETF ($179.47 on Oct. 20) is positive but overbought with the ETF above its five-week modified moving average of $174.82. The 200-week simple moving average is the “reversion to the mean” at $150.51, last tested during the week of July 8, 2016 when the average was $132.92. The 12x3x3 weekly slow stochastic reading rose to 80.14 last week up from 76.26 on Oct. 13 moving above the overbought threshold of 80.00.

Investment Strategy: Buy weakness to my quarterly and monthly value levels of $173.93 and $173.56, respectively. Sell strength to my annual and semiannual risky levels of $182.54 and $191.56, respectively.

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