Financials Back In Favor

If you watched last week's video, you'd remember I said that the models were turning neutral. Based on this past week's action, it looks like the markets were more bullish than neutral. enter image description here Looking at last night's chart, we can see that the models are turning bearish for the next two weeks. But looking out into the July numbers, there are a lot more bullish numbers.

The Financial sector has the best outlook, which should occur in 17 to 20 days. The estimated top ETF in that category for that period is $XLF enter image description here

Emerging Markets and US Stock Indexes Show Up As Best

The Emerging Market sector has the best prospect, which should occur in the 13 to 16 day period. The computed average is 6.26, which could be considered not overly bullish. The estimated best ETF in that sector for the same period is $VWO.enter image description here Next is followed by the U.S. Stock Mkt sector with a good forecast in 26 to 29 days. The estimated top ETF in this sector for that period is $IWM. enter image description here

Models Are Neutral For Next 2 Weeks

If you watched last week's video, you'd remember I said that the models were bullish at that time. Looking at last night's chart, we can see that the models turned neutral, especially for the next two weeks. There are few bullish numbers, as far as I can see.
enter image description here The Commodities sector has the best prospect, which should occur in the 27 to 30 day period. The estimated top ETF in that category for the same period is $XLB. Next is followed by the Financial sector with a good forecast for the period of 12 to 15 days. The estimated top ETF in this sector for that period is $XLF.

Models Staying With Financials and Commodities

The Financial sector has the best outlook, which should occur in the 10 to 13 day period. The computed average is 6.46, which could be considered not overly bullish. The estimated best ETF in that sector for the same period is $XLF.enter image description here Next is followed by the Commodities sector with a good forecast for the period of 27 to 30. The estimated best ETF in this sector for that period is $XLB. enter image description here

US Stock Market Index and The Financial Sector Look Strong

For review, the past several weeks, the models have been positive on financials. Looking at the 30-day chart for the Spider Financial ETF XLF, you can see that it has performed well. enter image description here

So let's switch over to last night's picks. And just as with the previous week's chart, there is hardly any red highlighting which indicates that the models are bullish for the next six trading weeks.
enter image description here The US Stock Market Index has the best prospect, which should occur in the 22 to 25 day period. The computed average is 6.45, which may be considered slightly bullish. The estimated top ETF in that category for the same period is $XLI.enter image description here Next is followed by the Financial sector with a good forecast for the period of 23 to 26 days. The estimated best ETF in this sector for that period is $UYG.enter image description here

Commodites and Health Care May Be Best for Next 6 Weeks

What a wild week with the crypto-currencies going on a bender, and this morning the currencies are still experiencing selling pressure. It seems that the Chinese communist government put the kibosh on the growth of crypto.enter image description here

Looking at the charts, while we can see more greens than reds, all the colors are paler by comparison to the past couple of weeks, so I do not expect much change in the six weeks. enter image description here The Commodities sector has the best prospect, which should occur in the 22 to 25 day period. The computed average is 6.17, which is not overly bullish. The estimated top ETF in that category for the same period is $UYM. Next is followed by the Health Care sector with a good forecast for the period of 25 to 28 days. The estimated best ETF in this sector for that period is $XHS.

Models Say - Financials And Real Estate Are The Best Sectors

The week ended favorably, especially with Thursday and Friday being positive. And here in North Carolina, while there have been long gas lines, the mask mandate has been lifted, so things have started to look better... especially the smiles on people's faces.

Looking at the charts, I can see the greens are getting darker. So that indicates that the overall markets should be more bullish during the latter part of June.

The Financial sector has the best outlook, which should occur in the 26 to 29 day period. The computed average is 6.38, which may be considered almost neutral. The estimated top ETF in that category for the same period is $UYG. Next is followed by the Real Estate sector with a better than average forecast for the period of 6 to 9 days out. The estimated best ETF in this sector for that period is $VNQ.

In contrast, the Energy sector has the worst outlook in the 14 to 17 day period; in this sector, $DIG may have the worst results. enter image description here

FCG - That Call Didn't Work

Along with the rest of the market, $FCG was down. $FCG itself was down 1.5%.

Referring back to this morning's post - even with all 6 models calling for an up day - they were wrong.

I did say that the 1-day calls are usually wrong. I did expect it to go up.

$FCG - First Trust ISE-Revere Natural Gas

From last night's ETF Expectation's report, $FCG scored a perfect 9. That means all 6 models gave this ETF the highest bullish move. The call is just for today, and as a caveat, out of the 30 days of calls - the next day's call is known to be the worst call of all. But when all the models make the same call for a particular day, it should be considered very strong. A perfect 9 score is seldom seen, so let's pay attention and see how it pans out.

And for what it's worth, the next day's score for $FCG is 8.2. So there should be some carry-over.

Also, note that this ETF is at a 6 month high.

The average percentage change for a 9 call on $FCF is approximately 4%.