Technical Core

We use two technical-based strategies, and both use Index exchange traded funds based on the S&P 500 or the Dow Jones Industrials. The central feature of these models is that they measure market risk continually. When market risk is high, they reduce exposure to stocks, and when market risk is low, they increase exposure to stocks. This approach allows us to participate in the broad market trend (whether up or down) and to lock in gains by reducing market exposure as prices get overextended. The key benefit is that they typically perform very well during major recessions. But every system does have its weaknesses, and these tend to underperform when the stock market is flat and volatile. This system has longer holding periods than the Sector Rotation or Calendar systems, and will tend to have a mix of some long-term and short-term capital gains or losses.

Funds Used:

Ultra S&P (SSO), Large Cap Core (FEX), Ultra Inverse S&P (SDS)