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Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: cbstock who wrote (365)	11/5/1997 8:29:00 AM
From: Angler	Read Replies (1) \| Respond to of 4916

To Angler from Angler: I notice many inclinations to trade in and out of certain high flying funds like Select Bio and Select Energy Service using tech. analysis and M.A. or impulse. I have never been able to satisfy myself that major elements and euphoric entities in the stock market are logically following such acadamia. One thing for sure - if one begins to move in and out of a position that is experiencing good earnings (the main driver in all markets) on tips, hunches and short term fluctuation, he had better buy back in at a lower price than he switched out. This is a very difficult thing to do since a dropping price discourages one from rebuying and most will wait for a new higher price to confirm re-entering. Periodically buying back into sold out (good performing) funds will work adversely on the bottom line. Check it out. If one started out this year in Fsesx and exchanged it 3 times whenever the market or 1 or 2% short term dips scared one off, the result might surprise you (and depends on your guts to move back in quickly?) There is certainly a case for exchanging out of any fund or position such as at the end of the year before distributions, when the whole market or single industry is taking a beating like Precious Metals did or you need the money. I have been able to check this outcome out by leaving one of my younger working daughter's funds entirely alone while trading mine frantically. Times I traded into a fund that turned out far worse than the good one I left. Beyond that - every move in and out has a tax consequence (except in pensions) which can eat into the bottom line also. Any thoughts? Angler