There are two changes to the NDW Sector 4 Model (POWER4) this week: sell the Invesco NDW Utilities Momentum ETF (PUI) and the Invesco NDW Energy Momentum ETF (PXI) and buy the Invesco NDW Healthcare Momentum ETF (PTH) and the Invesco NDW Financials Momentum ETF (PFI). PUI and PXI were sold because utilities and energy fell out of the top four in the model’s relative strength sector rankings. As replacements, the model added PTH and PFI as healthcare and financials have moved into the top four in the rankings.

PTH currently has a near-perfect 5.85 fund score, which is 1.52 points better than the average for all healthcare & biotech ETFs. On its default chart, PTH has given two consecutive buy signals and currently sits at a multi-year high. Year-to-date (through 7/2) PTH has gained 21.84% on a price return basis.

PFI currently has an acceptable 3.31 fund score, which is 0.04 points better than the average for all financials funds, and a positive 2.88 score direction. On its default chart, PFI returned to a buy signal in mid-June when it broke a double top at $61. Year-to-date, PFI has gained 6.58%

In addition to PTH and PFI, POWER4 also has exposure to industrials and technology. Year-to-date, the model has gained 16.69% while the S&P 500 (SPX) is up 9.32%.

The distribution curve places each ETF on a bell curve according to their respective degrees of overbought or oversold status using a 10-week distribution. ETFs that are statistically oversold will appear on the left-hand side of the bell curve, while those that have become statistically overbought will appear on the right-hand side of the bell curve. Perhaps the most useful attribute of this feature is that it displays the entire universe on the curve at one time to give us a general picture of whether the Invesco ETF universe is generally overbought on a near-term basis, or generally oversold. Our best opportunities are to buy strong relative strength ETFs that have regressed back toward mean conditions based on market weakness, or have become oversold based upon extreme market weakness. Weekly Distribution is a short-term gauge that is most helpful in timing entry and exit points, while the longer-term information of trend and relative strength is a more controlling factor in the decision of whether to buy or sell.

Legend:

• UPPERCASE indicates that the RS chart is on a buy signal.
• lowercase indicates that the RS chart is in a sell signal.
• GREEN lettering indicates the ETFs trend chart is on a buy signal.
• RED lettering indicates the ETF is on a sell signal.
• Box Color indicates the Sector Status Rating. Green = Favored, Yellow = Average, and Red = Unfavored.

The table below is a review of important technical data on a select group of Invesco ETFs. Significant changes within the past week are highlighted in Green if positive or Red if negative. This portfolio is designed to be used as a "radar" screen to bring your attention to potentially important technical changes that may require your attention and potential action. Below this week's featured portfolio is the ability to see other Invesco portfolios including Market, Sector, International, Dynamic family, and RAFI family. 

* - Dates prior to 1/24/2011, which is when the Invesco Sector Seven ETF Model Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 6/1/10, which is when the Invesco Small Cap Sector Model ETF Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 6/7/13, which is when the DWA Global Technical Leaders Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 8/31/15, which is when the Invesco Multi Factor Global Equity Model became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 10/14/08, which is when the Invesco Special Opportunities Model ETF Portfolio became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 8/15/2017, which is when the Invesco Dynamic Equal Weight Sector Model became available in the Invesco Weekly ETF Report, are representative of when the position was added to the backtested model.