Tuesday, June 02, 2015 12:42:25 AM
*** 9 SECTORS AND THERE 9 EQUAL WEIGHT ETF'S
RANKING THE 18 SECTORS... Chart 3 shows a screen shot of the nine sector SPDRs and nine equal-weight sector ETFs in "summary" format. I created a ChartList with these eighteen ETFs, chose "summary" for the viewing option and sorted by the StockCharts Technical Rank (SCTR). There are a few key takeaways we can use going forward. First, healthcare is by far the strongest sector in the market. The SCTRs for the HealthCare SPDR (XLV) and Equal-weight Technology ETF (RYT) are both above 90. Second, the technology sector is the second strongest. The SCTRs for the Technology SPDR (XLK) and Equal-weight Technology ETF (RYT) are both above 80. These are the two sectors chartists should focus on for bullish setups. Third, the finance sector is in the middle, but the SCTRs for the Finance SPDR (XLF) and Equal-weight Finance ETF (RYF) are both above 60.
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Turning to the bottom of the pile, the energy, utilities and industrials sectors are by far the weakest. The Utilities SPDR (XLU) has an SCTR above 40, but the other five are below 40. Note that the SCTRs for the Industrials SPDR (XLI) and Equal-weight Industrials ETF (RGI) fell sharply last week. These are the three sectors to be avoided right now. On a final note, the percentage change is based on one month (May). The energy sectors lost the most, while the healthcare sectors gained the most. Also notice that the EW Tech ETF gained 2% and came in third place. Leadership from the equal-weight tech sector reflects broad strength in the sector.
RANKING THE 18 SECTORS... Chart 3 shows a screen shot of the nine sector SPDRs and nine equal-weight sector ETFs in "summary" format. I created a ChartList with these eighteen ETFs, chose "summary" for the viewing option and sorted by the StockCharts Technical Rank (SCTR). There are a few key takeaways we can use going forward. First, healthcare is by far the strongest sector in the market. The SCTRs for the HealthCare SPDR (XLV) and Equal-weight Technology ETF (RYT) are both above 90. Second, the technology sector is the second strongest. The SCTRs for the Technology SPDR (XLK) and Equal-weight Technology ETF (RYT) are both above 80. These are the two sectors chartists should focus on for bullish setups. Third, the finance sector is in the middle, but the SCTRs for the Finance SPDR (XLF) and Equal-weight Finance ETF (RYF) are both above 60.
...............................................................
Turning to the bottom of the pile, the energy, utilities and industrials sectors are by far the weakest. The Utilities SPDR (XLU) has an SCTR above 40, but the other five are below 40. Note that the SCTRs for the Industrials SPDR (XLI) and Equal-weight Industrials ETF (RGI) fell sharply last week. These are the three sectors to be avoided right now. On a final note, the percentage change is based on one month (May). The energy sectors lost the most, while the healthcare sectors gained the most. Also notice that the EW Tech ETF gained 2% and came in third place. Leadership from the equal-weight tech sector reflects broad strength in the sector.
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