There are changes to two Invesco models this week. The Invesco Commodity Model (POWRSHARES) sold the Invesco DB Oil Fund (DBO) and the Invesco DB Energy Fund (DBE) and bought the Invesco DB Agriculture Fund (DBA) and the Invesco DB Base Metals Fund (DBB). DBO and DBE were sold because the funds’ respective ranks in the model’s relative strength matrix fell below the threshold to remain holdings in the portfolio. In their place, the model added DBA and DBB as they were the highest-ranking funds in the matrix that were not already holdings in the portfolio. DBB currently has a strong 5.24 fund score and reached a new multi-year high earlier this month. Year-to-date (through 6/18) DBB has gained 10.29% on a price return basis. DBA currently has a 2.61 fund score and positive 1.09 score direction. Year-to-date, the fund has gained 4.35%.

The POWRSHARES model has only two holdings, so this week’s trades represent 100% turnover in the portfolio, shifting it from energy exposure to agriculture and base metals. Year-to-date, the model has gained 7.01%.

The Invesco Small Cap Sector Model (POWERSMALL) sold the Invesco S&P Small Cap Energy ETF (PSCE) and bought the Invesco S&P Small Cap Materials ETF (PSCM). PSCE 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 PSCM as it was the highest-ranking fund in the matrix that was not already a model holding. PSCM currently has  a strong 5.72 fund score, which is 2.15 points better than the average for all materials funds, and a positive 2.15 score direction. Year-to-date, PSCM has gained 25.58%. In addition to PSCM, the model also has exposure to industrials and technology. Year-to-date, POWERSMALL has gained 28.12%.

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. 

* - 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.