Sector Selections 7/5/2011

[Timothy Clontz]

The force of the rally did not change the overall relationship of the sectors. Although XLK (technology) edged out XLU (utilities) in money flow, the edge was very slight. Bullish sectors had a slight money flow edge for a few days at the beginning of last week, but gave way to the bearish sectors by the end.

The model remains in a bear configuration.

Depending on the IWM Robot, new positions would be in:
XLK (long), or
XLE (short)

As I noted last week, I considered changing my premise so that I could shift long sectors within a Robot call, but that turns out to be very unlikely to ever pull off.

So, for now, while the Robot remains long, I'm in XLU, which was the initial long sector selection.

Those who are following my experiment can note that XLU is dragging behind IWM by a good margin (even counting for the 1% dividend payout XLU gave me last week).