The U.S. Tactical Sector Rotation Strategy is engineered for investors seeking to participate in "Bull Markets" and prospectively avoid the ravages of a "Bear Market". This strategy is driven by our proprietary Major Trend Indicator (MTI).
The MTI is primarily quantitative and differentiates whether "Bull Market" or "Bear Market" conditions exist. The MTI is used in conjunction with classic chart analysis. When the MTI signal indicates "Bull Market" conditions, the model invests in the top five performing sector ETFs of the ten sectors within the S&P 500 index, plus a Midcap sector ETF (MDY), and Small Cap sector ETF (IWM).
|10 U.S. Sectors1||-100||100|
|2 U.S. Mid & Small Cap Sectors||-100||100|
Alternatively, when "Bear Market" conditions are indicated, the model invests in a Money Market Fund and/or establishes "short" positions through "inverse" ETFs (i.e. inverse S&P 500 and/or inverse Russel 2000 ETFs). The relative performance of each sector is quantified weekly and the portfolio is rebalanced quarterly.