SelectSectors.com Example Portfolios

The purpose of these example portfolios is to attempt to determine the impact of portfolio performance when general Market Indicators are part of the overall investment strategy as opposed to being continuously invested in the Regression top ranked Sectors.

Two portfolios are tracked below that are based on signals generated by the www.SelectSectors.com Regression tables and Equity Market Indicators. The Buy and Sell entries may correspond to real or hypothetical purchases. These Sector Buy / Sell entries are for illustrative purposes only and are not recommended positions and should not be used as trading signals to be acted upon. The starting value of both funds is a hypothetical $100,000. as of 9/4/2001

This portfolio ignores the investing climate and regardless of what the SelectSectors Market Indicators imply, will
always be invested in the top ranked Regression Sectors.
9/4/02 at the open buy $5,000 Food-Agr. (FDFAX)
9/4/02 at the open buy $5,000 Gold (FSAGX)
9/4/02 at the open buy $5,000 Medical-Deliv. (FSHCX)

Please note, because the above have been in the Regression
top picks for some time, this is late and poor entry timing.


Medical Delivery (FSHCX) 2 & 4 week EMA gave a sell signal
at Fridays close. (9/7/01)
Therefore FSHCX was sold at the 9/10/01 10:00 am open.
A short term 3/4 % penalty was incurred.

9/10/02 at the open buy $5,000 Paper&Forest. (FSPFX)
(FSPFX is currently in 3rd position on the 30 day Regression table)

Daily Portfolio profit/loss Chart

Comment 9/14/01
As opposed to the 100% money market portfolio, this portfolio continues
to loose money. It is interesting that the Regression picks are the very
strongest, but because of the strong Market downdraft as indicated by the
Double Red Alert, so far it just loses money very efficiently. Gold is acting
counter-cyclical and may end up rescuing this portfolio.

Comment 9/19/01
This exercise is being terminated. My conclusion is that investing without
paying attention to Market Timing is financial suicide. However, it is to be
noted that Select Gold which continues to be the top 30 day Regression pick
remains in an Uptrend. This shows once again the sometimes counter-cyclical
nature of Gold with respect to the Equity Market.

Regression and Indicator based Positions.

This portfolio will only invest in the top ranked Regression Sectors, when the SelectSectors.com Indicators are mostly favorable. Since as of 8/31/01 the Indicators are mostly RED, this portfolio remains 100% in the MoneyMarket.

Exit strategy

Sector positions will be exited whenever their NAV has declined by more than twice it's 20 day hourly standard deviation or whenever their exponential moving average (EMA) oscillator turns negative.