Equities in US are off to a positive start in July. Most sector SPDRs have gained reasonably in the first 4 trading days.
While it is too early to call in favor of bulls, the S&P 500 has broken above important consolidation range. Year-to-date
price change for the S&P 500 Tracking ETF - SPY is at an astounding +19.42%. It is very reasonable to expect a pullback
to occur. Short term investors will need to be monitoring the markets closely prior to positioning on the long side.
While there appears to be a temporary thaw in Trade War tensions between US and China, we can clearly see new uncertainties
emerging. In this environment, trend following investors may want to keep an eye on these sector SPDRS that appear to be
showing early signs of a firm-up in trend:
- XBI - Biotechnology
- XHE - Health Care Equipment
- XHS - Health Care Services
- XME - Metals & Mining
- XLV - Healthcare
- XAR - Aerospace & Defense
- XSD - Semiconductors
Broadly, the Health Care sector SPDR ETFS are showing positive price action though not all of them are outperforming the broader market.
The Aerospace & Defense sector SPDR has had a solid run over the past few months and may be extended. Semiconductors appear to be benefiting
from the recent relaxation in trade tensions. The Biotechnology sector appears to be finding some positive interest on recent acquisition oriented
Self-directed investors will want monitor these ETFS and see how price action is developing in the coming weeks.
Good Luck and Happy Investing!