This week, we have a change in the Guggenheim Equal Weight Sector Model GUGGSECT.  The Guggenheim S&P Equal Weight Health Care ETF RYH has been removed from the Model. This Model is designed to target exposure to the Guggenheim Equal Weight Sector ETFs that are demonstrating positive Relative Strength versus the Model benchmark, the Guggenheim S&P 500 Equal Weight ETF RSP. Each week we monitor 10 Relative Strength charts for each ETF in the Model's universe versus the RSP. As a result of the most recent market action, RYH reversed into O's versus the RSP, warranting its removal from the Model.

RYH had been a holding in the GUGGSECT Model since 2/19/2014. Over that timeframe, RYH posted a gain of 24.99% while the S&P 500 Index SPX was up 23.42% (through 12/12/2016). Looking at the trend chart of the RYH below, we find that after coming within just 2.5% of its all-time high in August, the chart pulled back significantly, breaking a double bottom at $142 in November. Additionally, it has seen considerable deterioration in its fund score which is now 1.45, down from 5.65 on 2/19/2014. As a result of this change, the GUGGSECT Model has five holdings equally weighted at 20% each. The Model maintains exposure to the following sectors: Consumer Discretionary, Energy, Technology, Utilities, and Real Estate. 

The performance numbers above a price return is not inclusive of dividends or all transaction costs. Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time to give us a general picture of whether the Guggenheim ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong relative strength ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell.

Average Level: 51.96

The average Bullish Percent reading this week is 60.3% up 3.25% from the previous week

										cvy
									CSD	rye
									eny	CZA	RSP
									lvl	RYJ	RGI
							frn	WREI	cut	RTM	RFV
					RYH		RYU	hgi	RCD	XLG	rzv
		cqqq		tan	eeb		RPG	NFO	RFG	RZG	RPV
		hao	tao	gsy	ewem	RHS	sea	RYT	DEF	wmcr	RYF
	-100--80	-80--60	-60--40	-40--20	-20-0	0-20	20-40	40-60	60-80	80-100	100->

Legend:

• UPPERCASE indicates that the RS chart is on a buy signal.
• lowercase indicates that the RS chart is in a sell signal.
• GREEN lettering indicates the ETFs trend chart is on a buy signal.
• RED lettering indicates the ETF is on a sell signal.

This section of the report categorizes all of the Guggenheim ETFs by their respective broad group. Along with each group, you can view the Average Group Score, which is an average of the scores of all funds represented in that particular group. Those Guggenheim ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those Guggenheim ETFs that have superior strength within their respective group. You want to focus on those ETFs that exhibit superior strength when looking to add new exposure to a particular group.

The DWA Matrix uses a Point & Figure relative strength comparison of each index to one another to identify the strongest and the weakest among the universe used. The ETFs with the most relative strength buy signals (suggesting outperformance) versus the others in the group are listed at the top. These ETFs should be overweighted in the portfolio. Those ETFs with the least amount of relative strength buy signals versus the others in the group are listed at the bottom. These ETFs should be underweighted in the portfolio. The DWA Matrix uses a Point & Figure relative strength comparison of each index to one another to identify the strongest and the weakest among the universe used. The ETFs with the most relative strength buy signals (suggesting outperformance) versus the others in the group are listed at the top. These ETFs should be overweighted in the portfolio. Those ETFs with the least amount of relative strength buy signals versus the others in the group are listed at the bottom. These ETFs should be underweighted in the portfolio.

Weekly Update:

RYH has been removed from the GUGGSECT Model.

* - Dates prior to 10/14/08, which is when the Guggenheim Special Opportunities Model ETF Portfolio became available in the Guggenheim Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 7/8/2014, which is when the Guggenheim Equal Weight Sector Model became available in the Guggenheim Weekly ETF Report, are representative of when the position was added to the backtested model.