There are no changes to any of the iShares models this week. In our DALI sector rankings, the technology sector sits in second place with 232 buy (tally) signals. When looking at the iShares Sector Rotation Model (ISHRESCT), IGM stands out as one of the strongest holdings with a 137.41% absolute performance while in the model.

The iShares Expanded Tech Sector ETF (IGM) provides exposure to stocks in the technology space. The fund sits on three consecutive buy signals after completing a double top break at $158. IGM maintains a strong fund score of 5.76 and a positive score direction of 2.32, highlighting strong recent improvement. The weekly OBOS indicates that the fund is in overbought territory, so wait for a normalization of the 10-week trading band before considering. Initial strong support between $148-$150, with additional support at $114.

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:

The iShares Sector Rotation ETF Portfolio ISHRSECT is designed to identify major sector themes in the market place through the use of the Point & Figure relative strength tools. The portfolio's composition is based on relative strength and is applied by comparing the iShares inventory components to one another by means of point & figure relative strength analysis. The relative strength analysis is then aggregated using a relative strength "matrix" ranking process, and the number of holdings are then based on the highest realtive strength components within the inventory of holdings. For more information on the portfolio construction and back testing, click here. The iShares Sector Rotation Portfolio will be updated Thursday mornings by 9:30 am EST.

The iShares Tactical ETF Portfolio ISHRTACTICAL is designed to identify major asset class and sector themes in the market place through the use of the Point & Figure relative strength tools. The portfolio's inventory draws primarily on sub-sector iShares, some asset class ETFs, and some commodity based iShares. Relative strength is compared not only to the market indices but also to the other iShares in the inventory. This model will also incorporate the use of fixed income ETFs to help mitigate risk in the portfolio. For more information on the portfolio construction and returns since the inception in 2002, click here. The iShares Tactical Portfolio will be updated Thursday mornings by 9:30 am EST.

The iShares International Model ISHRINTL is designed to identify themes within the international equity asset class, in terms of country and region strength. The portfolio's inventory is made up of approximately 45 International iShares ETFs. We implement the relative strength matrix metholodology as the rules-based decision making strategy for buy and sell decisions within the model. For more information on portfolio construction and performance, you can visit the model's information file attached here.

The iShares Developed Market Model ISHRDEV is designed to identify themes within the developed market space, in terms of country strength. The portfolio's inventory is made up of approximately 27 developed market iShares ETFs. We implement the relative strength matrix metholodology as the rules-based decision making strategy for buy and sell decisions within the model. For more information on portfolio construction and performance, you can visit the model's information file attached here.

The iShares Emerging Market Model ISHREMERG is designed to identify themes within the emerging market space, in terms of country strength. The portfolio's inventory is made up of approximately 27 emerging market iShares ETFs. We implement the relative strength matrix metholodology as the rules-based decision making strategy for buy and sell decisions within the model. For more information on portfolio construction and performance, you can visit the model's information file attached here.

Be sure to check out the iShares DALI Organizer Tool which shows you which asset classes are emphasized in DALI and then provides you with at least one model per all asset classes. In addition, from this one link you can input a dollar amount and then allocate that money across the different models. The iShares DALI Organizer Tool will then automatically calculate exactly how many shares to buy and exactly what percentage that position represents in a portfolio. You can then export this information to excel to potentially interact with your trading system.