Weekly Sector ETF

Buy the ETF that tracks the strongest sector in the same direction as the SPY trend. When the SPY is in a down trend, but the leveraged short ETF, when in an up trend buy the leveraged long ETF. The sectors used are made to match those on finviz.com. The sector performance and SPY trend will be evaluated each weekend and the trade will move accordingly to stay in the strongest sectors following the trend for the next trading week.

Long Criteria:

  1. SPY 50DMA > SPY 200DMA at the beginning of the trading week
  2. The long ETF from strongest quarterly performing sector listed in the table below

Short Criteria:

  1. SPY 50DMA < SPY 200DMA at the beginning of the trading week
  2. The short ETF from weakest quarterly performing sector listed in the table below

Trade Entry:

  • Use a 3x weekly ATR to determine stop loss and position sizing.
  • The risk will not be more than 2% of account value
  • The dollar amount to purchase will not be more than 20% of account value
  • Set limit buy order at the previous closing price for the following Monday

Trade Maintenance:

  • Maintain a fixed 2x weekly ATR stop throughout the week

Trade Exit:

  • If the ETF closes below the stop price on any day during the week, close the position at the opening of the next day
  • Always close the position at the end of each week, winning or losing, to avoid decay

 

SECTOR LEVERAGED LONG SHORT
Basic Materials 2x UYM SMN
Conglomerates 3x SPXL SPXS
Consumer Goods 2x UGE SZK
Financials 3x FAS FAZ
Healthcare 3x/2x CURE RXD
Industrial Goods 2x UXI SIJ
Services 2x UCC SCC
Technology 3x TECL TECS
Utilities 2x UPW SDP

ETF List by industry