There are no changes to any of the Invesco models this week. As we do each quarter, today we review the performance of the models covered in this report. US equities continued to advance in the fourth quarter as the S&P 500 (SPX) gained 2.35%. The NDW Sector 4 Model (POWER4) and the Invesco Sector Seven Model (POWER7) each finished the quarter in positive territory but lagged the S&P. POWER4’s financials exposure weighed on performance for the quarter while POWER7 was hampered by exposure to next gen media & gaming and internet. POWER4 finished the year with a gain of 3.21%, while POWER7 advanced 11.24%, both trailing SPX which was up over 16%. The Invesco Small Cap Sector Model (POWERSMALL) finished the quarter down 3.61%, exposure to consumer discretionary, which the model exited in mid-November, was the largest drag on performance.

The Invesco Special Opportunities Model (GUGGSO) was the only global model to finish the quarter in the red; the model’s exposure to Chinese technology was the biggest detractor as the Invesco China Technology ETF (CQQQ) was down almost 12% in Q4. All three global models finished the year in positive territory but lagged the iShares MSCI ACWI ETF (ACWI).

The Invesco Commodity Model (POWRSHARES) finished Q4 well ahead of the benchmark boosted by its exposure to precious metals. The model finished the year up more than 9%, but lagged its benchmark due in part to two whipsaw trades in energy.

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 Invesco 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.

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.
• Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.

The table below is a review of important technical data on a select group of Invesco ETFs. Significant changes within the past week are highlighted in Green if positive or Red if negative. This portfolio is designed to be used as a "radar" screen to bring your attention to potentially important technical changes that may require your attention and potential action. Below this week's featured portfolio is the ability to see other Invesco portfolios including Market, Sector, International, Dynamic family, and RAFI family. 

928= Intl.

929 = Mkt

930 = Sect

931 = commod

932 = dyn

* - Dates prior to 1/24/2011, which is when the Invesco Sector Seven ETF Model Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 6/1/10, which is when the Invesco Small Cap Sector Model ETF Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 6/7/13, which is when the DWA Global Technical Leaders Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 8/31/15, which is when the Invesco Multi Factor Global Equity Model became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

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

* - Dates prior to 8/15/2017, which is when the Invesco Dynamic Equal Weight Sector Model became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.