There are no changes to any of the iShares models this week. While we have recently seen some shuffling in the DALI asset class rankings as commodities, international equities, and domestic equities have each ranked first at some point over the last two weeks, international equities continue to demonstrate relative strength and have handily outpaced US stocks this year. Investors looking to take advantage of this strength may wish to consider the iShares MSCI International Momentum Factor ETF (IMTM).

After declining more than 10%, IMTM returned to a buy signal and a positive trend with a spread quadruple top break at $41.50 and continued higher to $45.50, establishing a new all-time high before pulling back modestly. IMTM has a near-perfect 5.70 fund score, which is 1.33 points better than the average for all non-US funds, and a positive 3.88 score direction. With the recent pullback, IMTM is once again in actionable territory on its 10-week trading band with a weekly overbought/oversold (OBOS) reading of 48.8%, so those interested in adding exposure may do so here. Year-to-date (through 6/18) the fund has gained 18.23% on a price return basis and also carries a 2.45% yield.

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.

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.