Summary
- I am leveraging new automation tools to trade signals across 11 sectors, aiming for enhanced returns by focusing on 82 specific sector funds.
- My Sector Gauge signals, tested over 38 months have shown significantly better returns than a Buy & Hold approach across multiple sectors.
- Key risks to fund of fund trading include fund manager stock selection and external market factors, but the model’s past performance suggests it may be worth our time.
- For 2025, I will use Mid-Week signals confirmed by End-Week signals, with a streamlined approach to manage 20 active sector funds efficiently.
- May you have a Happy and Prosperous New Year!!
Introduction
Every year I add new features for members. That is my official marketing pitch for how I share more live financial research with no certainty about future results. As we begin my 9th year on Seeking Alpha, I continue to test theories and many different models that emerged from my doctoral research on market anomalies begun in 2013. While I never expected to turn all my public research testing of various models into one of the top marketplace services on Seeking Alpha, I am so grateful to all of you for your interest and the great people at SA for how this has come about.
This year I am leveraging even more new gauges as automation from my new vmbreakouts.com website allows me to trade signals on all 11 different sectors. It has made sense to members for a long time that better signals for trading specific ETFs would come from the most closely related gauges and not just the broad market gauges of over 7,500 stocks. This year, thanks to major advances in automating the computation and reducing the extreme complexities via my research website, I think I can now meaningfully test a fund based upon 82 specific sector funds for enhanced returns. We can evaluate this new feature and research together.
Financial Sector
In no particular order, I have tabs on the Value & Momentum ETF Dashboard spreadsheet for tracking each of the Sector funds multi-year results. Starting with the Financial sector I selected a group of bull/long funds and bear/short funds for tracking. In every sector there are many more bull funds available than bear funds.
