This Week in ETF Reports
SSTREET: Buy Aerospace & Defense (XAR)
As a refresher, the State Street Sector Model SSTREET monitors the Relative Strength (RS) relationships between each of the sector and industry ETFs in the model universe versus the S&P 500 Index (SPX) on a 6.5% scale. ETFs that are showing positive RS versus SPX (measured by a column of Xs) are included in the model and are removed only when that relationship reverses into Os. Over the past week of trading, the RS chart comparing the SPDR S&P Aerospace & Defense ETF XAR versus the S&P 500 Index reversed up into Xs, warranting its addition to the SSTREET model. This model remains fully invested through sector-based ETFs within the broader State Street family of ETFs and is evaluated on a weekly basis. The number of holdings can vary based on sector leadership within changing markets, and with the addition of XAR, the model is equally weighted across 19 positions at 5.26% each. Year-to-date, the SSTREET model is up 26.05%, outperforming the S&P 500's return of 14.59% (through 12/8)... (Read more)
Fund Feature: Invesco Solar ETF
There are no changes to any of the Invesco models this week. In last week’s trading, the Invesco Solar ETF TAN gave a third consecutive buy signal on its default chart when it broke a double top at $85. TAN currently has a near-perfect 5.98 fund score, 2.8 points better than the average for all energy/natural resource funds, and a positive 1.28 score direction. TAN’s largest holdings include Enphase Energy ENPH 11.02%, SolarEdge Technologies SEDG 9.96%, Xinyi Solar Holdings Ltd 968-HK, and First Solar Inc FSLR. Year-to-date (through 12/11) TAN has generated a price return of 172.08%. With a weekly overbought/oversold (OBOS) reading of 33%, TAN sits well within actionable territory, so those interested in adding exposure may do so here. On its default chart, TAN has most recently found support at $80, with additional support at $71. The fund faces overhead resistance at $88... (Read more)
iShares Fund Spotlight: IYM
There are no changes to any of the iShares models this week. Last week, the basic materials sector moved into the top four spots in the DALI domestic equity rankings. Those looking to take advantage of the strength of this sector should consider the iShares US Basic Materials ETF IYM. IYM currently has a favorable 4.15 fund score, 0.18 points better than the average for all materials sector funds. On its default chart. IYM has given four consecutive buy signals and sits one box away from giving a fifth with a double top breakout at $114. Which would also mark a new all-time high for the fund. Year-to-date (through 12/9) the fund gas generated a price return of 14.63%. With weekly overbought/oversold reading of 69%, IYM is verging on heavily-overbought territory, so those interested in adding exposure should may be best served to do so on a slight pullback. IYM has most recently found support at $106, with additional support found at $95... (Read more)
