XLE Energy SPDR July Outlook—Energy stocks and Crude have shown signs of bullish reversal in the 2nd half of June.
XLE is a preferrable exposure to XLB in our work and has triggered a tactical buy signal.
Sector Reports
XLK Information Technology Sector SPDR June Outlook—Strength in Semiconductor stocks and benign inflation readings keep XLK the long-term winner in this cycle
XLK outperformance has persisted as inflation was not a negative event in May. We look for the outperformance trend to continue at the sector level given the absence of material headwinds and investor recognition of long-term leadership. Our new Elev8 Sector Model debuts with XLK as an OVERWEIGHT allocation of 2.92% for June
XLC Communication Services SPDR June Outlook—Periphery industries firm up around Blue-Chips META, GOOG/L and NFLX
The XLC has improved steadily since the advent of the bull market in early 2023. Upside participation is broadening out and rates have failed below cycle highs for the 2nd time over the intermediate term alleviating that concern. The Elev8 Sector Model recommends an OVERWEIGHT position in XLC vs. the S&P 500 of +3.22% our largest overweight allocation for June
XLB Materials SPDR June Outlook—We like the outlook for XLB better than that of XLE in June against a mixed backdrop for commodities prices
Our new Elev8 sector selection process starts June with an overweight in XLB of 1.68% vs. the sector weight in the S&P 500. We are not quite as sanguine on XLB as that allocation suggests as we are naked the Energy sector in our model and hoping a modest overweight in XLB will hedge us
XLF Financials SPDR Outlook—A steadily improving Banking Industry sets the table for XLF success in June
The XLF has improved steadily over the past 9 months. And after a bit of a stumble in May relative to the S&P 500 it looks to be in a very constructive position for June. Our Elev8 Sector Model debuts with an OVERWEIGHT Position in XLF vs. the benchmark S&P 500 of +1.10%
XLP Consumer Staples SPDR June Outlook—Staples bottoming process relative to the broad market is still intact
We debut our Elev8 Sector Model with an OVERWEIGHT position in XLP of 1.98%
XLV Healthcare SPDR June Outlook—Looking for some tactical mean-reversion performance after a brutal 15-months for the sector
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%
XLY Consumer Discretionary Sector SPDR June Outlook—Bad getting worse as the few pockets of strength within the sector YTD couldn’t hold up in May
The XLY is one of our 0% allocation sectors for June in the Elev8 Model Portfolio with a net -9.86% UDERWEIGHT position.
XLRE Real Estate Sector SPDR June Outlook—Still a strong downtrend. Structural headwinds remain in place
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.
XLY Consumer Discretionary SPDR – May Outlook
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 »