Tech and Real Estate On Top

Looking at last night's chart, we can see that the models have started to turn more green which means more to the bull side. enter image description here The Technology sector has the best prospect, which should occur in 26 to 30 days. The computed average is 6.37, which I regard being just slightly bullish. The estimated best ETF in that sector for that period is $USD.enter image description here Next is the Real Estate sector, with a better than average forecast in 26 to 29 days. The estimated top ETF in this sector for the period is $URE.enter image description here

In contrast, the Metals & Miners sector has a poor outlook in the 6 to 9 day period; The computed average is 3.48, which I view as not too bearish. In this sector, $DGP may have the worst results.enter image description here

Metals And Miners Look Very Weak

Last week's call was a bear call, and with Powell's Fed presser on Thursday, he made it one on Friday.

Looking at last night's chart, we can see that the models continue to be bearish for the next two weeks. And then some.
enter image description here The Metals and Miners sector has no positive numbers for the next six trading weeks. This situation is terrible for me since I purchased some palladium ETFs on Thursday. I will exit that trade come Monday morning. The Real Estate sector has an underperforming outlook in the 4 to 7 day period; In this sector, $VNQ may have the lowest results. Another sector with a weak view is Commodities. The weakness should occur in 1 to 4 days. The models expect the ETF $DBC to finish the lowest in this group.

The Technology sector has the best outlook, which should happen in 21 to 24 days. The estimated best ETF in that sector for that period is $SOXL.

Expecting a Short Term Dip In The Real Estate Sector

I use the Stochastic Momentum Index (SMI) to signal when to buy and sell ETFs and stocks. Lately, the SMI for the real estate ETFs has shown a bearish signal. Below is the chart for $URE. The secondary chart is the SMI. In the SMI chart, the SMI line and the signal line are above 40 and have crossed. This indicates a selling situation. As you can see, this situation occurred several times: early May, around March 21st, and around February 21st. While the selling at those dates wasn't solid (see the follow-through price action), the signals do show some selling opportunities. Likewise, the reversed cross-over actions of mid-January, early March, and mid-May provide some buy signals.

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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