May 2021 ETF and Market Analysis Summary

The S&P closed flat for May, rising slightly from 4190 at April end to 4200 at May close.  

 

For the ETFs in our Retirement Strategy, those that remain LONG:

  • MUB – Municipal Bonds
  • XLV – Healthcare
  • XLK – Technology.  It did drop briefly below its long term moving average intramonth, but then recovered.
  • XLU – Utilities
  • FDL – Dividend Leaders
  • VNQ – Real Estate
  • XLY – Consumer Discretionary.  It did drop briefly below its long term moving average intramonth, but then recovered.

ETFs transactions for end of May:

  • GLD – Gold – BUY.  The ETF has risen past its long term moving average.  Likely rising on inflation fears.

No Activity:

  • XLP – Consumer Staples – remains SELL – we avoid consumer staples in an accumulating market, as there are better options available.
  • VCLT – Long Term Bonds – remains SELL – avoiding in this rising interest rate environment
  • EMB – Emerging Market Bonds – remains SELL – it is rising toward its long term moving average, but still not a BUY at the moment

In summary, one transaction at this month end (buy GLD).  Three ETFs to keep an eye on (XLK, XLY, EMB).  We have a 6-2 weighted regime for accumulation, Phase 2.  Stay as fully invested in market correlated equities as makes sense in your allocation strategy.

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