Gains have been strong across the board over the past week as the S&P 500 (SPY) finished at another all-time high yesterday. The only significant laggard has been the Dow (DIA) as it sits 0.9% higher from last Tuesday’s close. Otherwise, each of the major index ETFs has risen upwards of 3%. Small and mid caps have outperformed while the performance of large caps has been somewhat weaker. The Core S&P Small Cap (IJR) has done the best rising by 3.04%. The next best ETF is the Nasdaq (QQQ) with a 2.75% gain. In spite of these gains in the past week, there are actually fewer ETFs sitting at overbought levels than yesterday. Whereas there were 11 overbought major index ETFs at yesterday’s open, today there are only 9 as the S&P MidCap 400 (MDY) and Core S&P Mid-Cap (IJH) both moved to neutral on modest declines. Given their uptrends, this also gives them a good timing score in our Trend Analyzer tool.
Looking at performance broken out by industry groups, the two best performers recently have been Semiconductors (SMH) and Solar (TAN). Both industries ripped over 6% higher in the past week. This brings SMH to be one of the top performing ETFs YTD. SMH also retook the 50-DMA in the past week but has yet to move into overbought territory, helping it to earn a good timing score. Meanwhile, solar has actually been the best-performing industry in 2019 by a wide margin as easing trade tensions have been a factor behind the rallies of both ETFs. TAN has now risen 56.71% YTD and is now trading at extremely overbought levels again.
While both of these ETFs have surged, most other industries have also moved higher as only the Gold Miners ETF (GDX) and US Healthcare Providers (IHF) are lower over the last week. The underperformance of GDX along with Junior Gold Miners (GDXJ) follows a surge where both become very extended from their 50-DMAs; both are still teetering on extremely overbought levels as well. While not in the red, with oil sliding, energy ETFs like the Dynamic Energy E&P (PXE) and S&P Oil & Gas E&P (XOP) have also been somewhat underperforming. These are currently the furthest below the respective 50-DMAs and the closest to oversold territory. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer and much more.