SMO Exclusive: SPDR Sector ETFs Strength Report Tuesday 2024-11-05
Bottom Line
The 11 sector ETFs are bunched between 3Strong and 5Average. No sectors are below average.
Background
- This analysis consists of the Stock Market Organizer stock-by-stock strength analysis applied to the 500 stocks that comprise the 11 SPDR Select ETFs.
- These results are combined with overall market environment readings (via the Market Strength Score and the Sector Risk Gauge) to discern appropriate portfolio exposure given prevailing market and sector conditions.
Context: Comparison to Previous Weeks
The following graphics show recent week-to-week changes.
The weeks ending Tuesday 10/22/24 and 10/29/24 were weak while the most recently-completed week ending 11/05/24 was mixed.
Mixed week for the just-completed week ending Tuesday, 2024-11-05.
Current Status: 3.9 Composite Score, +0.2 this week
3.9 is just above (stronger than) 4Strong. Per the comparison to previous weeks above, this is a weakening of 0.2 points from 2024-10-22 and a strengthening of 0.2 points from 2024-10-29.
This shows that the top four ETFs are rated 3Stronger and are XLC/Communications, XLF/Financials, XLI/Industrials, and XLU/Utilities.
The four weakest ETFs at 5Average are XLE/Energy, XLP/Consumer Staples (both of which strengthened rating), XLV/Healthcare, and XLB/Basic Materials which weakened rating.
This shows the ETFs in decreasing order of Strength Rating and strengthening for the week. Sectors with the same rating are listed in order of as follows: first, sectors that strengthened rating during the week; second, sectors with ratings that did not change during the week but did strengthen; third, sectors with ratings that did not change during the week but did weaken; and fourth, sectors which weakened rating during the week. The color-coded lines delineate different ratings - 4Strong or stronger are separated by green lines, 6Weak or weaker are separated by red lines, and 5Average is separated by black lines.
The ETFs are listed below based on their strength rating.
1Strongest
None
2VeryStrong
None
3Stronger
- XLI/Industrials (Strengthened rating)
- XLC/Communications (Strengthened)
- XLF/Financial (Weakened)
- XLU/Utilities (Weakened)
3.9 - Composite Score
4Strong
- XLK/Technology (Weakened)
- XLRE/Real Estate (Weakened)
- XLY/Consumer Discretionary (Weakened)
5Average
- XLE/Energy (Strengthened rating)
- XLP/Consumer Staples (Strengthened rating)
- XLV/Healthcare (Strengthened)
- XLB/Basic Materials (Weakened rating)
6Weak
None
7Weaker
None
8VeryWeak
None
9Weakest
None
Today's Market Context
Key Headlines
"U.S. stocks rise sharply as Wall Street focuses on election"
"Big Tech stocks rally, as tech now drives S&P 500 more than on Election Day 2016"
"U.S. gold demand dropped in October, offering some voter insights for Election Day"
(Marketwatch)
"Dow rallies 400 points, S&P 500 gains 1% as traders await U.S. election results" (CNBC)
Key Current Readings
SP500: 5,783
Nasdaq: 18,439
Nasdaq 100: 20,227
Russell 2000: 2,261
10Y Treasury: 4.281%
2YT: 4.189%
Oil (WTI Crude): $72
Bitcoin: $69,375
Dollar Index: 103.44
Gold: $2,753
VIX: 20.49
(CNBC)
Sector ETF Analysis Contents
The following Stock Market Organizer strengthening/weakening analysis looks at the 11 SPDR ETFs and their underlying component stocks for the week ending Tuesday 2024-11-05, as follows:
- ETFs Summary
1.1 Current Overview
1.2 Historical Summaries - ETFs Detail
2.1 XLB Basic Materials
2.2 XLC Communications
2.3 XLE Energy
2.4 XLF Financials
2.5 XLI Industrials
2.6 XLK Technology
2.7 XLP Consumer Staples
2.8 XLRE Real Estate
2.9 XLU Utilities
2.10 XLV Healthcare
2.11 XLY Consumer Discretionary - Stock Detail (downloads)
1. ETFs Summary
1.1 Current Overview
The following graphs reflect the composition of each of the ETFs based on their underlying stock strength ratings which range from 1Strongest to 9Weakest. Since I only care about the strongest and weakest in each sector, stocks rated from 2VeryStrong through 8VeryWeak are categorized as "Ignore."
- Top row: XLB/Basic Materials, XLE/Energy, and XLI/Industrials
- Second row: interest rate-sensitive ETFs XLF/Financials, XLRE/Real Estate, and XLU/Utilities
- Third row: XLK/Technology and XLC/Communications
- Bottom row: XLP/Consumer Staples, XLY/Consumer Discretionary, and XLV/Healthcare
The headers for each graphic are color-coded. ETFs rated 4Strong or better have green headings - currently, 7 of 11 ETFs qualify. The weakest ETFs XLB/Basic Materials, XLE/Energy, XLP/Consumer Staples, and XLV/Healthcare have 5Average ratings. ETFs that changed rating this week have thick green or red borders. ETFs that strengthened or weakened but did not change rating have thin green or red borders.
1.2 Historical Summaries
Below are 10-week historical strength rating summaries of the ETFs, sorted first by ETF and then by Week. The graphics make it easy to compare strengthening and weakening between ETFs over the most recent 10 weeks.
Sorted by ETF
This graphic shows the past 10 weeks strengthening and weakening segregated by ETF.
Sorted by Week
This graphic shows the past 10 weeks strengthening and weakening segregated by week.
2. ETFs Detail
Details for each of the 11 ETFs are provided below. Comments:
- The top section shows the strength rating of the sectors comprising each ETF, based on the eight original Stock Market Organizer classifications and NOT the 11 ETF classifications. For example, the XLB Basic Materials ETF consists of 19 Basic Materials stocks, 6 Consumer Goods stocks, and 2 Industrial Goods stocks.
- The middle section shows the previous 10 weeks' strengthening and weakening of the relevant sectors. For example, since the XLB has Basic Materials, Consumer Goods, and Industrial Goods stocks, these three sectors are shown in the middle section of the XLB detail. The XLF (Financial) has Financial, Services, and Tech stocks.
- The bottom section shows strengthening/weakening for the underlying ETF components stocks, and includes the listing of their Stock Market Organizer industries and sub-industries. These stocks are listed in order based on Sub-industry then strongest to weakest comparative stock strength rating. The Basic Materials XLB ETF includes both Newmont Corporation/NEM in the Gold sub-industry within the Metals & Mining industry and Dow Inc./DOW in the Specialty Chemicals sub-industry within the Chemicals industry.
In these bottom sections, one can visually see the strength/strengthening and weakness/weakening of the component stocks in each ETF.
2.1 XLB Materials - 27 stocks (small) - weakened rating to 5Average = worst rating (tied, XLE/Energy, XLP/Consumer Staples, XLV/Healthcare)
Includes securities of companies from the following industries: chemicals; metals and mining; paper and forest products; containers and packaging; and construction materials.
2.2 XLC Communication Services - 22 stocks (small), unchanged at 3Stronger = best rating (tied, XLF/Financials, XLI/Industrials, XLU/Utilities)
Includes companies that have been identified as Communication Services companies by the GICS®, including securities of companies from the following industries: diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services.
2.3 XLE Energy - 22 stocks (small), strengthened rating to 5Average = worst rating (tied, XLB/Basic Materials, XLP/Consumer Staples, XLV/Healthcare)
Includes companies that have been identified as Energy companies by the GICS®, including securities of companies from the following industries: oil, gas and consumable fuels; and energy equipment and services.
2.4 XLF Financial - 72 stocks (large), unchanged rating at 3Stronger = best rating (tied, XLC/Communications, XLI/Industrials, XLU/Utilities)
Includes companies that have been identified as Financial companies by the Global Industry Classification Standard, including securities of companies from the following industries: financial services; insurance; banks; capital markets; mortgage real estate investment trusts; and consumer finance.
2.5 XLI Industrial - 76 stocks (large), strengthened rating to 3Stronger = best rating (tied, XLC/Communications, XLF/Financials, XLU/Utilities)
Includes companies that have been identified as Industrial companies by the Global Industry Classification Standard, including securities of companies from the following industries: aerospace and defense; industrial conglomerates; marine transportation.
2.6 XLK Technology - 69 stocks (large), unchanged rating at 4Strong
2.7 XLP Consumer Staples - 38 stocks (mid-sized), strengthened rating to 5Average = worst rating (tied, XLB/Basic Materials, XLE/Energy, XLV/Healthcare)
Includes companies that have been identified as Consumer Staples companies by the GICS®.
2.8 XLRE Real Estate - 31 stocks (small/mid-sized), unchanged rating at 4Strong
Includes companies that have been identified as Real Estate companies by the Global Industry Classification Standard (GICS®).
2.9 XLU Utilities - 31 stocks (small/mid-sized), unchanged rating at 3Stronger = best rating (tied, XLC/Communications, XLF/Financials, XLI/Industrials)
Includes securities of companies from the following industries: electric utilities; water utilities; multi-utilities; independent power and renewable electricity producers; and gas utilities.
2.10 XLV Health Care - 61 stocks (large), unchanged rating at 5Average = worst rating (tied, XLB/Basic Materials, XLE/Energy, XLP/Consumer Staples)
Includes companies from the following industries: pharmaceuticals; health care equipment & supplies; health care providers & services; biotechnology; life sciences tools & services; and health care technology.
2.11 XLY Consumer Discretionary - 51 stocks (mid-sized/large), unchanged rating at 4Strong
Includes companies that have been identified as Consumer Discretionary companies by the Global Industry Classification Standard (GICS®).
3. Stock Detail
The downloadable PDF below lists all component stocks in order of first Strongest to Weakest ETF and second Strongest to Weakest Stock. The difference between this report and the 11 ETF stock listings above is this report consolidates all component stocks whereas the above listings are segregated by ETF.
Download the following Excel file if you are interested in sorting results yourself.