ETF Stocks Weekly Sector Scorecard for the Week of July 6, 2011

After it was Chic, the bulls are singing… Good times, these are the good times Our new state of mind, these are the good times Happy days are here again The time is right for making gains Let's get together, how ‘bout quarter after 9 Come tomorrow, we will do it again.

weekly sector scorecard is humming the same tune as last week's rally changed the charts' state of mind – these are good times. Many sectors were pulled out of technical ditches and reset to neutral. In fact, we only had eight industries/styles make either bear list. Although, a few emerging bear qualifiers have been market leaders and may be ready to rotate to the bottom of the pack? ETF Stocks would be cautious about adding any new money to these industries. MATURE BEAR: industries that have under-performed and based on their current chart patterns and could continue to lag: • Coal • Construction and Materials EMERGING BEAR: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead: • Medical Equipment • Building Materials • Financial Administration • Property & Casualty Insurance • Value Stocks • Small Cap Value Stocks On the B side, ETF Stocks sees mostly consumer driven industries dominating the bull leaderboard. EMERGING BULL: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term: • Auto Parts • Gambling • Defense • Electronic Office Equipment • Broad Line Retail • Large Cap Growth • Software MATURE BULL: industries that have outperformed and their charts suggest the above average returns could continue: • Clothing • Travel & Leisure • Industrial Suppliers • Business Support • Leisure Goods • Multiutilities • Personal Goods • Specialty Goods • Restaurants & Bars • Consumer Finance • Footwear • Trucking • Toys • Growth Stocks Many of the bull sectors/styles made it into our Monthly Model Portfolios. We certainly hope they continue to outperform – fingers crossed! If the “soft patch” economists are correct and economic growth returns in the second half of 2011, then high P/E, revenue and earnings growth stocks make perfect sense. And that's what the sector scorecard is forecasting for the immediate future. With growth stocks in the bull column and value in the bear pile, a ZERO Trade strategy could make sense. To execute the strategy, buy a large cap growth ETF – iShares S&P 500 Growth Index (

) – and short an equal dollar amount of a small cap value exchange traded fund – iShares Russell 2000 Value Index (

). As long as growth (

) continues to show more muscle than value (

), no matter if the stock market goes up, down or sideways, investors will profit (minus commissions and costs of course.)