Nasdaq Dorsey Wright

There is a change to the Invesco Small Cap Sector Model (POWERSMALL) this week.

There is a change to the Invesco Small Cap Sector Model (POWERSMALL) this week: buy the Invesco S&P Smallcap Consumer Discretionary ETF (PSCD) and sell the Invesco S&P Smallcap Consumer Staples ETF (PSCC). PSCC was sold because its rank in the model’s relative strength matrix fell below the threshold to remain a holding in the portfolio. In its place, the model added PSCD as it was the highest-ranked fund in the matrix that was not already a model holding.

PSCD currently has an unfavorable 1.22 fund score but has recently shown signs of improvement. After declining more than 30% from its peak, PSCD returned to a buy signal and in May and now sits one box away from giving a second consecutive buy signal with a double top break at $102, which would also return the fund to a positive trend. Year-to-date (through 6/27), PSCD is down -7.34% on a price return basis. In addition to PSCD, POWERSMALL also has exposure to financials and industrials. Year-to-date, the model is down -7.52%, while the S&P 600 Small Cap Index (SPSML) is down -5.06%.

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