The Tech Sector Returns as The Top Pick

Let's look at last night's sector strength chart based on the related ETF averages;enter image description here the models' predictions are unchanged from last week. The six-week computed average is 4.74.

The Technology sector has an optimistic forecast for the next 30 trading days, with an average score of 5.52. And the Technology sector has a good short-term prospect, which should occur in 14 to 19 days. The computed average is 6.27. The estimated best ETF in that sector for that period is $SMH.enter image description here Note in the chart, the estimated price rises through the first twenty days but falls off quickly from days twenty-three through thirty.

The Precious Metals & Miners sector has a poor prospect in the 13 to 17 day period; the computed average is 3.70. In this sector, $GDXJ enter image description heremay have the worst results. Coming in second with a weak prospect is the Financial sector in 5 to 9 days. The computed average is 3.84. The models expect the ETF $KRE enter image description hereto finish the lowest in this group.

Biotech Looks Best Right Now

Before we look at last night's chart, I want to review three calls I made in the past. On November 27, I said that the Commodities sector call was bullish and that the ETF $UYM should perform well. Here is the chart for $UYM enter image description heresince November 27, and as you can see, $UYM is up more than 10%. The following Saturday, December 4, the models were bullish on the Health Care sector for the next several weeks and picked $RXL as the best performing ETF for that sector. Here is the chart for $RXL, enter image description hereand as you can see, it has performed well. And finally, for the third call, made on that same day, the models expected a downturn in the Precious Metals and Miner sector, and I said that $GDX might perform poorly. Here is the chart for $GDX. enter image description hereAs you can see, $DGX started with a sell-off, but it recovered significantly on Thursday and Friday. So two out of the three calls have been correct.

Let's look at last night's sector strength chartenter image description here based on the related ETF averages; the models' predictions are almost unchanged from last week. The six-week computed average is 4.74; the previous week's average was 4.7.

The Health Care sector has a good short-term prediction, which should occur in 14 to 26 days. The computed average is 6.15. The estimated top ETF in that category for that period is $RXL.enter image description here Next is followed by the Commodities sector with a better than average forecast in 22 to 25 days. The computed average is 6.05. The estimated best ETF in this sector for the period is $XLB.enter image description here

The Financial sector has a poor prospect in the 3 to 9 day period; the computed average is 3.39. In this sector, $UYG enter image description heremay have the worst results. Coming in second with a weak prospect is the U.S. Stock Mkt sector for the same period. The computed average is 3.49. The models expect the ETF $MVVenter image description here to finish the lowest in this group.

End of 2021 and Beginning of 2022 Sector Analysis

Let's look at last night's sector strength chart based on the related ETF averages; enter image description herethe models' predictions are lower than the previous week's numbers. The six-week computed average is 4.7; the previous week's average was 5.22.

The Technology sector has a positive forecast for the next 30 trading days, with an average score of 5.86. And the Technology sector has the best short-term prediction, which should occur in 19 to 22 days. The computed average is 6.30. The estimated top ETF in that category for that period is $USD. enter image description hereNext is followed by the U.S. Stock Mkt sector with a good forecast in 14 to 17 days. The computed average is 6.29. The estimated best ETF in this sector for the period is $SSO.enter image description here

There is no overall bearish sector call from the models. The Financial sector has an underperforming prospect in the 6 to 9 day period; the computed average is 3.39. In this sector, $FASenter image description here may have the lowest results. Coming in second with a weak prospect is the Biotech sector in 27 to 30 days. The computed average is 3.54. The models expect the ETF $BIBenter image description here to finish the worst in this group.

Despite The Recent Sell-offs The Market Indicators Are Still Positive

Let's look at last night's sector strength chart enter image description herebased on the related ETF averages; the models' predictions are higher than the previous week's numbers. The six-week computed average is 5.22; the last week's average was 5.01. Despite the big sell-off over the past several days, the higher number is no surprise. As Jeff Hirsch over at that, The Almanac Trader points out, "December typically starts out weak."

Also, two other models I use, Monte Carlo and the other QLearning, indicate a more robust stock market.

Looking at specific sectors in the chart, the U.S. Stock Market has an optimistic forecast for the next 30 trading days, with an average score of 5.95. The Health Care sector has the best short-term prediction, occurring in 16 to 30 days. The computed average is 7.16. The estimated best ETF in that sector for that period is $RXL. enter image description hereNext is followed by the Real Estate sector with a better than average forecast in 22 to 27 days. The computed average is 7.01. The estimated best ETF in this sector for the period is $IYR.enter image description here

The Financial sector has an underperforming prospect in the 27 to 30 day period; the computed average is 3.73. In this sector, $KBE enter image description heremay have the worst results. Coming in second with a weak prospect is the Precious Metals & Miners sector in 10 to 14 days. The computed average is 4.10. The models expect the ETF $GDX enter image description hereto finish the lowest in this group.