Cruise Coontrol Portfolios ( CCP ) SelecteSectors.com

Cruise Control Portfolio (CCP)

This portfolio is designed to perform sector rotation automatically.

When the sectors are trending Up and Market Indicators are favorable, the top ranked sectors should provide the best Gain per unit Risk returns.

However, augmenting the CCP selection process with the sectors "support" and "resistance" levels, should produce superior results.

Please note: For decades Fidelity offered trading with their sectors based on hourly pricing. They have now terminated hourly pricing and imposed onerous trading rules. For this reason I use the Fidelity Sectors to determine the "Best" sectors, but then purchase either the underlying stocks or corresponding ETFs, Holders, ETN etc.

As an example, Energy Services ( FSESX ) is currently a strong sector and Power Shares ETF, Dynamic Oil & Gas ( PXJ ) has comparable performance. Also Utilities ( FSUTX ) has very strong long term performance and Vanguard's Utility ETF ( VPU ) has comparable performance. ( 5/12/07 ) Schippi

Please note: Changes have been made to the CCP programs. An estimate of sector ending velocity and acceleration have been added to the CCP tables. When these quantities are negative, their charts should be inspected for a possible Decline after posting large gains. ( 12/14/06 ) Schippi

Top 15, 30 and 60 day CCP sectors

60 Day Cruise Control leaders.
(*** Candle Charts updated daily *** )

The intended purpose of this 60 day window
is to highlight longer term Sector trends.

Cruise Control Portfolio ( 60 Market Days )

30 Day Cruise Control leaders.

Cruise Control Portfolio ( 30 Market Days )

Long Term Cruise Control Portfolio ( CCP ) Tables
( This data is most useful when a uniform market trend is occurring
and the Market Indicators are mostly favorable. )

Top 125 and 250 day CCP sectors

Cruise Control Portfolio with Maximum Gain Per Unit Risk .
Using daily data over past 250 market days

Cruise Control Portfolio ( 250 market days )

Cruise Control Portfolio with Maximum Gain Per Unit Risk .
Using daily data over past 125 market days

Cruise Control Portfolio ( 125 ) market days

The Cruise Control Portfolio (CCP) employs a proprietary optimization technique that is superior and circumvents the pitfalls of the regression approach which was previously employed.

The CCP tables are most useful when an Up trend is occurring. The Indicator page attempts to ascertain the current Up or Down status of the Market Direction.

Assuming the indicators are mostly Green, then the CCP tables are useful. Selecting the Top of the table should produce the best results.

Optimization and Maximum Gain to Risk ratios will indicate the safest fund to employ for an Up trend. However, you should always verify the best CCP fund by charting the fund for short, medium and long term time frames.

However, in a Down Market, when the Indicators are mostly Red, the CCP Tables should not be used.

An alternate market strategy is necessary.

The Rydex fund family offers funds that short the Market, (e.g.) ARKTOS and URSA and are good vehicles for a Down Market.

ProShares.com now offers ETFs for shorting or going long with leverage for some major market Indices. These new ETFs allow someone in an IRA to hedge their positions without suffering the limitations of trading mutual funds.

Note: Positions in any of the above Sectors would require protective and trailing stops. Where protective stops take you out on large daily/hourly negative NAV changes and trailing stops take you out when the NAV declines from it's peak value by a specified stop percentage. (e.g.) 6% or a moving average crossover has occurred.

E-mail Comments to Schippi@SelectSectors.com