The XLV has continued to deteriorate and has been a large underweight in our process since the bull market started in early 2023. However, our work also suggests that oversold defensive shares can be a good tactical add to a portfolio and that’s what XLV shares are this month. Our Elev8 Sector Model debuts with an OVERWEIGHT position in XLV of + 1.02%
The XLY is one of our 0% allocation sectors for June in the Elev8 Model Portfolio with a net -9.86% UDERWEIGHT position.
XLRE is one of the 0% Sectors in our Elev8 Sector Model netting an UNDERWEIGHT position of -2.18% vs. the S&P 500 weight to start June.
Homebuilders are pausing, a lot is riding on Mega Cap. Earnings as leadership narrows here and 12 month rolling returns flip negative.
XLY Consumer Discretionary SPDR – May Outlook Read More »
The patient remain unwell and in the market for better medicine.
XLV Healthcare SPDR – May Outlook Read More »
Inflation jitters, rates consolidating, narrowing leadership have all been dynamics that have boosted Utilities in the near-term and are still on the table.
XLU Utilities SPDR – May Outlook Read More »
Still a strong downtrend. The chart suggests the move is to sell down exposure on near-term strength.
XLRE Utilities SPDR – May Outlook Read More »
Bouncing off intermediate-term oversold conditions. Rates need to cooperate to resuscitate the uptrend. That outlook is murky.
XLK Information Technology SPDR – May Outlook Read More »
Secular tailwinds support many industries within the sector as the relative performance improves.
XLI Industrials SPDR – May Outlook Read More »
Sustained upside momentum from Q4 of 2023 signals a constructive re-emergence of buying power into the sector.
XLF Financials SPDR – May Outlook Read More »
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