S&P 500 Sector ETF Momentum Rankings

The next PTJ...Good job!

 

I did some tweaking to the Highflier system after the last couple days:

Buy funds which are above 55 on the 100-day RSI and above the 200-day SMA. Sell funds which are below 50 on the 100-day RSI and below the 200-day SMA. Get out when you can, not when you have to. Look on the other side of the fence for greener grass.

 

S&P 500 Sector ETF Long-Term Momentum Rankings:

$XLV $XLU $XLK $XLE $XLY $XLI $XLP $XLRE $XLF $XLB

Short-Term Momentum Rankings:

$XLU $XLV $XLK $XLE $XLY $XLP $XLI $XLRE $XLF $XLB

 

Largely the same as Mebane Faber and Jerry Robinson too. But they rebalance only yearly or quarterly.

 

The shared momentum list is not a strategy. However, elements of momentum (crossing negative or positive, significant shift, pair trades, value, contrarian etc) can be (and are) strategic tactical components.

 

You take your S&P ETF sectors and you rate them by relative strength and you put your money into the top-rated one, two or three ETFs and rebalance your portfolio as needed and you're supposed to beat SPY about 70% of the time. Beating the market isn't necessarily making money, though, because SPY could lose money.

 

I switched to 100-day RSI only. In at 55 and out at 55.

 

S&P 500 Sector ETF Long-Term Momentum Rankings:

$XLV $XLU $XLK $XLY $XLP $XLI $XLE $XLRE $XLF $XLB

Short-Term Momentum Rankings:

$XLU $XLV $XLK $XLP $XLRE $XLY $XLI $XLE $XLF $XLB

 

We largely agree on the ranking, but XLV is the only one above 55.

 

S&P 500 Sector ETF Long-Term Momentum Rankings:

$XLU $XLV $XLP $XLK $XLRE $XLY $XLE $XLI $XLF $XLB

Short-Term Momentum Rankings:

$XLU $XLP $XLRE $XLV $XLK $XLF $XLY $XLI $XLE $XLB