Biotech ETFs Dominate Rankings Again

Biotech ETFs continue to dominate momentum rankings in our ETF rankings system.

The latest weekly rankings are shown below as WkBk0. They represent closing prices as of Friday. The latest ranking is a non-trade day ranking. Other columns represent prior week rankings.

Momentum Rankings as of July 21, 2017

The two biotech ETFs retain their top three rankings and have done so for the last four weeks. XLV, a health care sector has also been very strong over this same period, currently ranking fourth. It has been in the top four for the last five weeks. The returns on the two biotech ETFs had they been brought on the trade-day are both in excess of 4% thus far.

The current top five ranked ETFs have been rather consistent over the last several weeks. RSX, a volatile ETF representing Russian stocks, leaped into sixth place this week after four prior weeks of ranking at or near the bottom. It is so volatile that conservative investors should probably ignore it.

DBA and DBC, also highly volatile, rebounded from dismal rankings to respectable ones. A single week’s ranking does not mean much, but it may be an early sign of commodity inflation. Gold and silver, not ranked above, had reasonable near-term price performance, perhaps another early sign of inflation. Or, perhaps merely a commodity bull’s imagination.

Those trading these rankings probably should not try to anticipate. The rankings system was designed to follow top-ranked momentum ETFs and not anticipate future rankings.