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%.

The Financial Sector Continues To Have The Best Outlook

I see more green in today's chart, so the models indicate a more bullish future, at least for the next six trading weeks. What stands out most to me is how the technology sector has fallen out of favor. enter image description here The Financial sector continues to have the best outlook, which should occur in the 19 to 22 day period. The estimated top ETF in that category for the same period is $FAS, Direxion's 3x Leveraged Financial Bull ETF. Also, keep a bullish eye on the Commodities Sector, Health Care Sector, U.S. Market Index Sector, and Global Market Index Sector.

On the sell side, the Real Estate sector has the most underperforming outlook in the 24 to 27 day period; in this sector, $IYR, iShares U.S. Real Estate ETF, may have the worst results. Coming in second with a weak view is the Biotech sector early next week and during the first 2 weeks of June, with the ETF $BIB, Proshare's Ultra BioTech, expected to finish the worst in this group.

Financials The Only Bullish Sector For Next 6 Trading Weeks

In today's chart, the lightly shaded background colors indicate a neutral forecast for all the sectors. enter image description here The Financial sector has the best outlook, which should occur in the 15 to 20 day period. The computed average is 6.48. To make a genuinely bullish call, I would want the average to start in the 7s. The estimated top ETF in that category for the same period is $UYG.