For the fifth consecutive week, there has been a change in the State Street Sector Model SSTREET. This week, the SPDR S&P Oil & Gas Equipment & Services ETF XES has been added to the Model. Recall that in order for an ETF to earn a spot within the State Street Sector Model SSTREET, it must be in a column of X's versus the S&P 500 Index SPX on a 6.5% relative strength chart. Over the past week of trading, the RS chart of XES vs SPX reversed up into X’s, warranting its addition to the SSTREET holdings. This Model remains fully-invested through sector-based ETFs within the broader State Street family of ETFs and is evaluated on a weekly basis. The number of holdings can vary based on sector  leadership within changing markets.  The Model draws from an inventory of 31 US sector products which range from cap-weighted broad sector exposure to equal-weighted sub-sector alternatives.  With the addition of XES, the model is equally weighted across 21 positions, signaling toward the widespread strength in the market. 

XES is an equal-weight Oil & Gas Equipment & Services fund with exposure to all S&P 500 components within that sector of the market. When looking at the default trend chart of XES, this fund has given two consecutive buy signals since September and currently has a fund score of 5.66, speaking to its strong relative strength and trending characteristics. Okay to buy here or on a pullback. Within the SSTREET model, XES will represent 4.76% moving forward and will bring the broad Energy exposure up to about 10% of the total portfolio.

Like a radar screen, the Weekly Activity Summary gives you a snap shot view of any technical changes to the State Street universe of ETFs. Included in the summary below are both long term technical changes and intermediate term technical changes.

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 State Street 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. 

Average Level: 14.87

The average Bullish Percent reading this week is 57.49% up 0.77% from the previous week

				xph							DIA
				XLP							XLI
				gml							SLY
				gmf							SPYV
				ewx					jpp		KIE
				rwx	bil	ipd			SPY		MDY
				ipk	XHE	jnk			XLE		XAR
				gxc	RWR	XHS	fez		bik		xme
				gii	iny	ipn	dwx		xop		kce
	lwc	ist		gmm	FLRN	MTK	SRLN	ipw	XRT		SLYV
tfi	bwx	scpb		gwx	CWB	SPYG	jsc	XHB	ONEK		MDYV
shm	IRY	bwz		XLV	cwi	XSW	mdd	gur	SDY	xes	KRE
IPS	ite	ibnd	wip	gaf	babs	GWL	XSD	irv	MDYG	XLB	xlf
itr	GLD	EBND	ipe	XLU	XLK	XBI	ipf	XLY	rbl	SLYG	kbe
tlo	psk	mbg	ipu	rwo	feu	acim	xtl	DGT	THRK	embb	XTN
	-100--80	-80--60	-60--40	-40--20	-20-0	0-20	20-40	40-60	60-80	80-100	100->

The DWA Matrix uses a Point & Figure relative strength comparison of each index to one another to identify the strongest and the weakest among the universe used. The ETFs with the most relative strength buy signals (suggesting outperformance) versus the others in the group are listed at the top. These ETFs should be overweighted in the portfolio. Those ETFs with the least amount of relative strength buy signals versus the others in the group are listed at the bottom. These ETFs should be underweighted in the portfolio.

The State Street ETF Model Portfolios are designed to identify major leadership themes within a market, doing so through the use of Point and Figure relative strength tools.  Each of the State Street Models are evaluated weekly and guided by a rules-based investment methodology. The construction of the State Street Sector ETF Portfolio is done through an analysis of the each State Street Sector ETF relative strength chart versus the S&P 500, while the Global Sector Rotation model employs a relative strength matrix ranking of the model's inventory.  In either case, those with strong relative strength make the cut and are eligible to be included in the portfolio, while those that aren't, will sit upon the sideline.  For more information on the portfolio construction and back testing please see the information files on the Models Page. To enter a portfolio amount and see shares to be purchased as well as modify the portfolio to your specifications, click here. (Note: All State Street ETF Models are updated Wednesday mornings by 9:30 am EST)

• State Street Sector ETF Model: Buy XES
• State Street International Sector ETF Model: No changes this week.
• State Street Global Rotation ETF Model: No changes this week.
• State Street Global Sector Rotation ETF Model: No changes this week.
• State Street Fixed Income Model: No changes this week.

* - Model Inception:1/17/2007

* - Model Inception:10/15/2008

* - Model Inception:10/28/2008

* - Model Inception: 07/28/2010

* - Model Inception: 04/27/2011