Summary
- The Sector Gauge ETF portfolio is up +41.81% YTD, outperforming major indices and the Nasdaq by over +34%.
- No sector gauge signal changes since Week 22; all six tested sectors remain in bull funds with strong momentum.
- Bonus ETF picks (DPST, LABU) are actively managed, with notable gains from recent sector breakouts, especially in healthcare and homebuilders.
- July’s historical strength could further boost returns as we monitor ongoing signal reliability.
- The Hedge Fund industry average return YTD shown at the end of the article is up +4.48% trailing the S&P 500 up +7.07% YTD, but lagging our ETF portfolio returns.
[ This is my 2,311th article published exclusively for members of my SA investment group to share ongoing research and selections. This does not including many public articles and blog posts. Please see the Members’ Library for many prior strategy articles, presentations, and studies. ]
Introduction
This is the Week 29 July ETF signal update article for the new Sector Gauge ETF trading system. This research test involves 52 weekly and mid-week updates testing the 82 sector funds available for trading the 6 largest sectors on the new Active ETF Sector Gauge model. More detailed instructions are available here:
- New ETF Trading System For 2025: Sector Gauge Fund Of 82 Funds | Value & Momentum Breakouts | Seeking Alpha Investing Groups
- Momentum Gauge Guide
We are keeping this test model as simple as possible by focusing on 6 major sectors out of 11 available sectors from the automated website and using only weekly signals. It is not known at this time if the daily or monthly signals will give you better returns than weekly signals.
Data Testing
The weekly data analyzed for 3 years shows in the article linked above that mid-week outperforms end of week signals since 2021. This pattern may also have something to do with the days of the week patterns that I share over the years with Tues/Wed underperforming compared to Thurs/Friday. You can also view the ETF Dashboard Spreadsheet for the current selection and performance on all 82 sector funds since 2021. Additionally, recent reviews of the new automated website shows gaps and weaknesses in some older data that are being worked on by the development team. Ultimately, newer data will be more reliable than older data and signals. However it could be months before all the data inputs are completely without errors as the automated website research is a work in process. The data limitations shown on some stock charts can also impact various sector and index gauges. We are striving to make every chart that relies on over 7,500+ US stocks fully correct with ongoing improvements and testing that includes this current study to improve the signals.
