There are changes to two Invesco models this week. The Invesco Small Cap Sector Model (POWERSMALL) sold the Invesco S&P Smallcap Financials ETF (PSCF) and bought the Invesco S&P Smallcap Energy ETF (PSCE). PSCF was sold because its rank in the model’s relative strength matrix fell below the threshold to remain a holding in the model. In its place, the model added PSCE as it was the highest-ranking fund in the matrix that was not already a model holding. PSCE currently has a strong 5.41 fund score, which is 1.14 points better than the average for all energy and natural resource funds, and a positive 5.24 score direction. On its default chart, PSCE has completed three consecutive buy signals and reached a new 52-week high in last week’s trading.   Year-to-date (through 2/6) PSCE has gained 23.57% on a price return basis; the fund also carries a 2.04% yield.

In addition to PSCE, POWERSMALL also has exposure to industrials and technology. Year-to-date, the model has gained 11.65%, while the Russell 2000 (RUT) is up 7.59%.

The Invesco Special Opportunities Model (GUGGSO) sold the Invesco Bloomberg Analyst Rating Improvers ETF (UPGD) and bought the Invesco Solar ETF (TAN). UPGD 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 TAN as it was the highest-ranking fund in the matrix that was not already a holding in the model. TAN currently has a near-perfect 5.86 fund score, which is 1.59 points better than the average for all energy and natural resources funds, and a positive 1.37 score direction. On its default chart, TAN has completed two consecutive buy signals and reached a new multi-year high earlier this month. Year-to-date, TAN has gained 17.55% on a price return basis.

In addition to TAN, GUGGSO also has exposure to buybacks, Chinese technology, the S&P 500 equal weight, and the S&P 500 top 50. Year-to-date, GUGGSO has gained 3.45%.

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.