There are no changes to any of the iShares models this week. Convertible bonds have reached the top of the Asset Class Group Scores (ACGS) fixed income rankings with an average group score of 4.88, the highest level it has ever reached; the group now ranks sixth out of all 135 groups in the ACGS system. Those who are interested to convertible bonds in light of their relative strength should consider the iShares Convertible Bond ETF ICVT.

After reaching an all-time high of $76 in Monday’s (7/13) trading, ICVT reversed down on Tuesday and currently sits at $73 on its default chat. ICVT currently has a near-perfect 5.88 fund score and a positive 4.32 fund score direction. Since bottoming in at $47 in March, the fund has rebounded sharply and given four consecutive buy signals. Year-to-date (through 7/15) ICVT has gained 19.04% outperforming the S&P 500 SPX which has returned -0.13% and the iShares US Core Bond ETF AGG which has notched a price return of 5.62%. The fund currently yields 1.54%. Even with Monday’s reversal down, ICVT remains in overbought territory with a weekly overbought/oversold reading of 90%, so investors adding exposure may be best served to do so on a pullback or after prices have normalized at current levels. ICVT has most recently found support at $66.

This section of the report categorizes select iShares Fixed Income and Currency ETPs by their respective fund groups. 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 iShares ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those 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 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 with an "average level" to give us a general picture of whether the iShare ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong market 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. The Distribution Curve below displays those ETFs with positive RS in uppercase letters and those ETFs with poor RS versus the market in lowercase letters. As well, those ETFs that are on a Point & Figure Buy signal appear in Green letters, while those on Sell signals can appear in Red letters. Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.

Average Level

44.41

								ewj
								iyt
								eido
								wood
								itb
								ewc
								ewz
							ech	IGV
							ewu	exi
							ewh	kxi	iev
							IJR	epp	indy
							ihf	IHI	iym
							IJH	IBB	ewq
							epu	IVV	RXI
							iak	eufn	enzl
							ews	IYY	IAU
							jxi	ewm	ewl
						ige	ewo	ewp	ezu
					ieo	ITA	IAI	SOXX	IXN
					ixc	icf	ixg	ewa	fxi
					iat	idu	epol	efa	ewg
					thd	iyz	ilf	eza	ewi	ewd
					emif	dvy	IHE	IYC	ixp	mxi
					iez	erus	IYJ	ewk	tur	eem	icln
					eww	igf	eis	gsg	iyk	slv	bkf
					ign	iyg	IXJ	ewy	ewn	eems	ewt
<--100	-100--80	-80--60	-60--40	-40--20	-20-0	0-20	20-40	40-60	60-80	80-100	100->

This section of the report categorizes select iShares 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 iShares ETFs that meet or exceed the Average Group Score will be highlighted in green in order to easily view those 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.

Weekly Updates: No changes.