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Markets Overall Sectors In Particular

For the Short-term, Avoid Consumer and Financial Sector ETFs.

The Consumer sector has an underperforming prospect in the 1 to 4-day period; the computed average is 1.74. In this sector, $XLY may have the lowest results. Coming in second with a weak prospect is the Financial sector for the same period, with a computed average of 1.86. The models expect the ETF $KBE to finish the lowest in this group.

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Sectors In Particular

China – Still Seeing Red

After reading a negative article in yesterday’s WSJ, I decided to see what my models say about the Chinese ETFs they track. The models agree, they, too, are down on the Chinese stock market.

Looking at the chart above, the two inverse ETFs, $FXP and $YANG stay in the bullish zone, the area above 4.5, for most of the tracking period. While the other four ETFs, non-inverse, remain bearish. There is one small period, from Sept. 18 through the 20th, in which both camps flip to the other side, but otherwise, they are calling for a continuing bearish Chinese stock market.

For more ETF picks go to https://mcverryreport.com/forecast

Categories
Markets Overall Sectors In Particular

Energy Top Pick For The Next 30 Days.

So the overall 30-day average has improved from last week’s 3.87. This week the models give us an average of 4.22, which is still bearish. The number needs to get above 4.5 to be bullish to provide a positive outlook.

For the second week in a row, the Financial sector, scoring 3.59, has the worst 30-day average score. The U.S. Stock Market has the second worst average score at 3.77.

The Energy sector moved back to the number one spot as the sector with the most bullish number. Energy’s 30-day average score is 5.12, up from 4.27. And Biotechnology which was number one last week, is down to second with a score of 4.59, down from 4.83. With a score of 4.59, it is bearly bullish.

So, like the past five weeks, the models remain primarily bearish.

Categories
Markets Overall Sectors In Particular

Got Gold? I Hope Not

Using data from tonight’s ETF Expectation report, I created the above chart, which shows the expected strength moves for four gold-related ETFs. Of the four, only one, $GLL, has an up-trend. $GLL is an inverse ETF. So the models expect gold to continue the downward track it has been exhibiting all year.

The models are bearish on all Precious Metal ETFs, sans the inverse ones.

Categories
Sectors In Particular

Bearing Away From China

At the beginning of this month, the models made a bull call on China stocks. After tonight’s run, that call ends tomorrow. The models have China stocks bearish now through the middle of August. But they are looking for strength to return at the end of that month.

The chart shows the predicted strength of four ETFs following the Chinese stock market. Note that the prediction for $YANG, an inverse ETF, is bullish, while the other three are bearish until August 15.

$CHAU – Direxion Daily CSI 300 China A Share Bull 2X Shares

$XPP – ProShares Ultra FTSE China 50

$YANG – Direxion Daily FTSE China Bear 3X Shares

$YINN – Direxion Daily FTSE China Bull 3X Shares

My other ETF picks are available at https://mcverryreport.com/forecast

Categories
Markets Overall Sectors In Particular

Wait Until August

Based on the corresponding ETF averages, let’s look at last night’s sector strength chart; the overall average remains a solid bearish value of 3.12.

A review of the individual charts has only two charts interesting to me; they are Biotechnology and Health Care. What catches my eye is that they both show moderate bullishness at the start of August. Here is Biotech with an overall average of 4.16. See the dip in the second week of July; the models predict its strength to the bullish side from there. Likewise, Health Care has a weaker average of 3.12, showing a similar pattern. As for the rest of the sectors, Energy has an average of 3.62 and shows a flat pattern. Precious Metals and Miners follow Energy with an average of 3.5. Next is Non-US stocks with a computed score of 3.27. This is followed by Commodities, averaging a value of 3.22, with a predicted up-trend line. Bonds are up next with a value of 2.95. Then Real Estate at 2.85. Technology moves up to the tenth slot with a computed value of 2.8. Slipping into eleventh is the Consumer sector with a score of 2.62. Then US Stocks at 2.56. And finally, the Financial sector finishes the group with a low score of 2.48.

So all thirteen sectors tracked by the models remain bearish.

Categories
Markets Overall Sectors In Particular

Energy, The Last Bullish Sector, Is Showing Signs of Weakess

The above chart is red except for the line representing the Energy sector. But even Energy is starting to show bear numbers too.

For individual ETF picks for the next 30 trading days go to http://mcverryreport.com/forecast

Categories
Sectors In Particular

Natural Gas Just Keeps Climbing

Like the battery rabbit, it just keeps going and going. $UNG and $BOIL have appeared as top picks for the past several weeks by the ETF Expectation models, and as of last night, they still are.

I have read that the Europeans are buying up American natural gas by the boatload due to the Ukraine-Russian war. I will use that to confirm the continuing price surge.

Categories
Markets Overall Sectors In Particular

The Real Estate Sector Bullish? Really?

The models have been very successful over the past three months. But to call for a bullish move in the Real Estate sector with what is going on now seems wrong. The models call for Real Estate to be very weak in the next couple of weeks but finish strong through the beginning of July.

The Technology sector has a bearish forecast for the next 30 trading days, with an average score of 3.26. The Consumer sector has an underperforming prospect in the 1 to 4 day period; the computed average is 2.39. In this sector, $XLP may have the lowest results. Coming in second with a weak prospect is the Real Estate sector for the same period with a computed strength of 2.46. The models expect the ETF $XLRE to finish the worst in this group.

The Real Estate sector has the best short-term prediction, which should occur in 17 to 20 days with a computed strength of 5.75. The estimated top ETF in that category for that period is $DRN.

For more ETF picks, go to http://mcverryreport.com/forecast

Categories
Sectors In Particular

Outlook for Gold and Silver Through The End Of June

I use the models’ estimates for $GLD and $SVL to develop the outlook for gold and silver for the next 30 trading days. Silver has the worse percentage change, especially at the end of May but then repeats at the end of June. While gold’s outlook isn’t as bad, it is still not positive.

For more ETF picks go to HTTP://mcverryreport.com/forecast