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Underweight Consumer Staples And Equal-Weight Utilities

Each of the 11 sectors of the S&P 500 has its own ETF and 1 is rated Underweight, 1 Equal-Weight and 9 Overweight.

The technology sector returns to leadership up 9.3% year to date followed by consumer discretionary up 6.3% and energy up 6.2%. The biggest loser is consumer staples down 12.9% year to date. Four sectors are modest year-to-date declines and three have modest year-to-date gains.

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, which was doable at Friday’s high.

Materials Sector SPDR Fund (XLB) – Overweight

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) – Overweight

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 and monthly risky levels of $107.96 and $109.89, respectively.

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 $72.68 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, and the first risky level was tested on Friday.

Financial Select Sector SPDR Fund (XLF) – Overweight

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 was $30.83.

Utilities Select Sector SPDR Fund (XLU) – Equal-Weight

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) – Overweight

Buy weakness to my weekly value level of $77.01 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) – Overweight

Buy weakness to my semiannual pivot at $188.79. Reduce holdings on strength to my quarterly and annual risky levels of $195.90 and $204.61, respectively.

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