Last updated: August 24, 2019
(Charts updated weekly. Click charts to enlarge)

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Communication Services

This sector includes companies that help us stay connected and entertained. Such as telecommunications (AT&T), entertainment (Netflix), and media (Disney).

This sector used to be called the Telecommunication Services sector but was changed in September 2018 to include consumer discretionary and technology companies.

($XLC) Communication Services Select SPDR ETF

Note: This ETF started trading in June 2018. We don't have enough data for analysis.

Consumer Discretionary

This sector includes companies that sell us non-essential goods, but things we reeeeeally want. Such as e-commerce (Amazon), home-improvement (Home Depot), and travel (Booking).

($XLY) S&P 500 Consumer Discretionary SPDR ETF

Our view:

The trend is higher. Buyers remain in control while above the 88-$92 levels.

At current prices ($120), we don't believe the reward/risk favors new long positions. We would look to be buyers closer to $90.

TOP TEN HOLDINGS

  1. Amazon ($AMZN)
  2. Home Depot ($HD)
  3. McDonald's ($MCD)
  4. Starbucks ($SBUX)
  5. Nike ($NKE)
  6. Booking Holdings ($BKNG)
  7. Lowe's ($LOW)
  8. TJX Companies ($TJX)
  9. General Motors ($GM)
  10. Target ($TGT)

Consumer Staples

This sector includes companies that manufacture and distribute products we use every day. From CPG companies (consumer packaged goods) like Procter & Gamble, to big-box retailers like Walmart and Costco.

($XLP) Consumer Staples Select SPDR ETF

Our view:

The trend is higher. Buyers remain in control while above the 48-$50 levels.

At current prices ($61), we don't believe the reward/risk favors new long positions. We would look to be buyers closer to $48.

TOP TEN HOLDINGS

  1. Proctor & Gamble ($PG)
  2. Coca-Cola ($KO)
  3. PepsiCo ($PEP)
  4. Walmart ($WMT)
  5. Philip Morris ($PM)
  6. Costco Wholesale ($COST)
  7. Mondelez International ($MDLZ)
  8. Altria Group ($MO)
  9. Colgate-Polmolive ($CL)
  10. Kimberly Clark ($KMB)

Energy

This sector includes companies that drill, refine, and transport commodities like oil and natural gas. There are two types of energy companies we'll cover in this section:

  1. Energy equipment and services.
    • These companies manufacture and service equipment (drilling rigs) used by Exxon, Chevron, and others.
  2. Upstream, midstream, and downstream.
    • Upstream: Companies that drill and extract oil and natural gas.
    • Midstream: Companies that deliver oil and natural gas to refiners and storage companies.
    • Downstream: Companies that refine and deliver the finished product to the end-user (gas stations, etc).

Note: Integrated companies do all thee: upstream, midstream, and downstream.

($XLE) Energy Select Sector SPDR ETF

Our view:

Price has been trading in a 40-$80 range since 2015.

We would look to be buyers at the bottom of the range (40-$50) and sellers at the top of the range (75-$80).

TOP TEN HOLDINGS

  1. Exxon Mobile ($XOM)
  2. Chevron ($CVX)
  3. Conoco Phillips ($COP)
  4. Schlumberger NV ($SLB)
  5. EOG Resources ($EOG)
  6. Phillips 66 ($PSX)
  7. Occidental Petroleum ($OXY)
  8. Kinder Morgan Class P ($KMI)
  9. Valero Energy ($VLO)
  10. Marathon Petroleum ($MPC)

Financial

This sector includes banks, insurance, and real estate companies. It's one of the largest segments within the S&P and a critical cog in our economy.

Finance touches every part of our life. From buying a house or car; to splurging on Christmas gifts. We all need money (banks), protection (insurance), and a place to call home (real estate).

Note: These ETFs feature our largest financial institutions. Many of them cover all aspects of finance: lending, insurance, and real estate. In our sub-sector section, we'll cover ETFs that are more specific to one segment of finance; like insurance or regional banks.

($XLF) Financial Select Sector SPDR ETF

Our view:

The trend is higher. At current prices, we don't believe the Reward/Risk favors new long positions. We would look to be buyers closer to $22.

TOP TEN HOLDINGS

  1. Berkshire Hathaway Class B ($BRK.B)
  2. JP Morgan Chase ($JPM)
  3. Bank of America ($BAC)
  4. Wells Fargo ($WFC)
  5. Citigroup ($C)
  6. American Express ($AXP)
  7. U.S. Bancorp ($USB)
  8. CME Group Class A ($CME)
  9. Chubb Limited ($CB)
  10. Goldman Sachs ($GS)

Healthcare

This sector includes companies that make drugs and equipment, provide health insurance, and manage facilities. This sector accounts for one-fifth of our GDP and is a critical component in all our lives.

($XLV) Healthcare Select Sector SPDR ETF

Our view:

The trend is higher. At current prices, we don't believe the Reward/Risk favors new long positions. We would look to be buyers closer to $80.

TOP TEN HOLDINGS

  1. Johnson & Johnson ($JNJ)
  2. UnitedHealth Group ($UNH)
  3. Merck & Co. ($MRK)
  4. Pfizer ($PFE)
  5. Abbott Laboratories ($ABT)
  6. Medtronic ($MDT)
  7. Amgen ($AMGN)
  8. Thermo Fisher Scientific ($TMO)
  9. AbbVie ($ABBV)
  10. Eli Lilly and Co. ($LLY)

Industrial

Industrial stocks include companies that produce goods used in construction, manufacturing, and transportation.

Some examples include airplanes (Boeing), air conditioners (Honeywell), and package delivery (United Parcel Service).

($XLI) Industrial Select SPDR Fund

Our view:

The trend is higher. At current prices, we don't believe the Reward/Risk favors new long positions. We would look to be buyers closer to $60.

TOP TEN HOLDINGS

  1. Boeing ($BA)
  2. Union Pacific ($UNP)
  3. Honeywell International ($HON)
  4. United Technologies ($UTX)
  5. Lockheed Martin ($LMT)
  6. 3M Company ($MMM)
  7. United Parcel Service Class B ($UPS)
  8. General Electric ($GE)
  9. Caterpillar ($CAT)
  10. Northrop Grumman ($NOC)

Materials

Material stocks include companies that discover, mine and process raw materials. These companies supply most of the materials used in construction. Like Sherwin Williams (paint) and Dow (industrial gas).

($XLB) Materials Select SPDR ETF

Our view:

The trend is higher. At current prices, we don't believe the Reward/Risk favors new long positions. We would look to be buyers closer to $47.50.

TOP TEN HOLDINGS

  1. Linde plc ($LIN)
  2. Ecolab Inc. ($ECL)
  3. DuPont ($DD)
  4. Air Products and Chemicals ($APD)
  5. Sherwin-Williams Company ($SHW)
  6. Newmont Goldcorp ($NEM)
  7. Ball Corp ($BLL)
  8. PPG Industries ($PPG)
  9. Dow Inc. ($DOW)
  10. Corteva Inc. ($CTVA)

Real Estate

There are three segments within the real estate sector.

  • Residential-Properties used as homes.
  • Commercial-Properties used for business purposes.
  • Industrial-Properties used for manufacturing and production.

Note: This sector includes REITs (real estate investment trusts).

($VNQ) Vanguard Real Estate Index Fund

Our view:

The trend is higher/sideways. At current prices, we don't believe the Reward/Risk favors new long positions. We would look to be buyers closer to $64.00.

TOP TEN HOLDINGS

  1. Vanguard Real Estate II Index Fund
  2. American Tower Corp. ($AMT)
  3. Crown Castle International Corp. ($CCI)
  4. Prologis ($PLD)
  5. Simon Property Group. ($SPG)
  6. Equinix Inc. ($EQIX)
  7. Public Storage ($PSA)
  8. Weltower Inc. ($WELL)
  9. Equity Residential ($EQR)
  10. AvalonBay Communities ($AVB)

Technology

This sector includes companies whose primary business is creating and distributing technology-based products and services.

The technology sector includes companies that make products for consumers, like Apple and Facebook. And companies that make products for businesses, like Microsoft and Mastercard.

($XLK) Technology Select Sector SPDR Fund

Our view:

The trend is higher. At current prices, we don't believe the Reward/Risk favors new long positions. We would look to be buyers closer to $60.

TOP TEN HOLDINGS

  1. Microsoft ($MSFT)
  2. Apple ($AAPL)
  3. Visa Class A ($V)
  4. Mastercard Class A ($MA)
  5. Intel ($INTC)
  6. Cisco Systems ($CSCO)
  7. Adobe ($ADBE)
  8. Oracle ($ORCL)
  9. PayPal Holdings ($PYPL)
  10. Salesforce.com ($CRM)

Utilities

Companies in this sector provide basic amenities like water and electricity. They are heavily regulated and many investors use them because they offer stable and consistent dividends.

($XLU) Utilities Select Sector SPDR Fund

Our view:

The trend is higher. At current prices, we don't believe the Reward/Risk favors new long positions. We would look to be buyers closer to $48.

Current dividend yield: 2.98%

TOP TEN HOLDINGS

  1. NextEra Energy ($NEE)
  2. Duke Energy ($DUK)
  3. Dominion Energy ($D)
  4. Southern Company ($SO)
  5. American Electric Power Co. ($AEP)
  6. Exelon Corp. ($EXC)
  7. Sempra Energy ($SRE)
  8. Xcel Energy ($XEL)
  9. Public Service Enterprise Group ($PEG)
  10. WEC Energy Group ($WEC)