ELEV8 Model Input Scores: August 2026
The table below shows the ELEV8 model’s scores for August. Financials have moved into the top position, while Technology and Industrials share second place as leadership broadens beyond the AI trade. Equity trends remain positive across most sectors, but rates and USD inputs are creating more dispersion. Communication Services and Utilities rank weakest in our work, with Consumer Staples also falling below the allocation threshold.
Key: Pattern = L/T (1yr+) Price Pattern of the Sector ETF, Mean Rating = simple average of 1-6 ratings (buy to sell) of all stocks within the sector, WTD Mean Rating = Cap Weighted Sector Constituent rating, OB = Overbought, OS = Oversold, N = Neutral
Model Input Commentary
The model inputs favor Financials, Information Technology and Industrials for August. Financials combine a bullish reversal pattern with positive stock-level, sector and macro confirmation, producing the strongest composite score. Technology remains a core exposure, but the sector’s consolidation and a negative rates input limit its near-term score. Industrials benefit from positive stock-level ratings, improving sector and industry trends and a broader pro-cyclical tape. Real Estate and Energy round out the strongest group. Real Estate retains a bullish reversal profile, while Energy remains useful as a portfolio hedge despite only a modest model score. Defensive leadership has faded: Consumer Staples and Utilities are held back by weak stock-level ratings and negative macro inputs, while Communication Services remains in a downtrend and ties Utilities for the weakest score.
ELEV8 Sector Rotation Model Portfolio: August Positioning vs. Benchmark Simulated S&P 500 (data as of 7/31/2026)
Previous Month Model Signal: July 2026
The August portfolio shifts weight toward Financials, Technology, Industrials, Real Estate and Energy while eliminating exposure to Consumer Staples, Utilities and Communication Services. Financials and Technology carry the largest active overweights, followed by Industrials, Real Estate and Energy. Health Care and Consumer Discretionary remain close to benchmark weights, while Materials is essentially neutral.
Conclusion
The AI trade remains important to the bull market and the current business cycle, but the August setup is less dependent on narrow Technology leadership. Financials and Industrials provide cyclical confirmation, while Real Estate and Energy add diversification across rate-sensitive and inflation-sensitive exposures. Technology remains a core overweight, but the broader leadership mix argues for a more balanced posture. With the weakest scores concentrated in Communication Services, Utilities and Consumer Staples, we think the bullish setup remains intact for August, with more emphasis on breadth and earnings delivery than on a single crowded theme.
Model and Presentation Data through July 30, 2026
Disclaimer: This material is for informational and educational purposes only and does not constitute investment advice, an offer to sell or a solicitation to purchase any security. Macro and sector relationships can change rapidly. Past performance does not guarantee future results.
About ELEV8
We introduced the ELEV8 Sector Rotation Model in July of 2024. Here is a look under the hood at the inputs we use to score the 11 GICS Sectors and our resulting positions. The model includes up to 14 indicators that range from:
- Stock Level Technical Characteristics
- Macro-overlays:
o equity trend (S&P 500)
o interest rate trend (10yr US Treasury Yield)
o commodities trend (Bloomberg Commodities Index)
o USD trend (vs. EUR & Broad Currency Indices)
- Relative performance vs. the benchmark S&P 500
- Overbought/Oversold oscillator studies
We’re currently using the Vanguard Sector Fund Family to express our model positions.
Data from FactSet Research Systems Inc.
