An ETF update is issued based on closing prices on Fridays. This ETF update is intended to be informational only. Actionable updates are once per month and occur when the following Monday is the first Monday of a new month. This Monday is not an action Monday.

There is no change from last Friday. The top ranked ETFs based on the Dynamic Momentum System (DMS) continue to be SHY, XLU and BIL ETFs that are defensive. Two of these (SHY and BIL) are short-term bonds and XLU is a utility ETF. Other than the XLU selection, you might as well be in cash.

Staying on the sidelines with cash is my take (as it has been for several weeks).

The Simple Switching System (SSS) overlays the DMS system and can be used as an additional filter to the DMS selections. The SSS switch says to ignore the DMS selections and be in cash. The fact that both of these systems point to cash only indicates how low momentum is in normal ETFs.

The red danger flag remains in place. For the last several weeks, the danger signals are as strong as they get.

Momentum is not high enough to risk capital according to both systems. I shall be very cautious in my portfolio considerations. I also shall remain in cash as far as the DMS portion of my portfolio.

To learn more about the ETF momentum system(s), click here and review past posts.

For those who have been following these posts, I am hoping to present a comprehensive guide that will allow the most current information, including updated results, to be found in one spot.

Good luck and good trading (or perhaps good non-trading might be more appropriate).