To: Berney who wrote (3214 ) 7/11/1998 8:05:00 AM From: MonsieurGonzo Read Replies (1) | Respond to
Berney; RE:" Sectors as Funds "FSRBX Regional Banks consistently under-performs the Wilshire Finance Index (the benchmark for BKX.X Banks , XBD.X Brokers and IUX.X Insurance sectors), TB. But in the main, I'm warming up to the idea of using a sector fund as a vehicle for investing and/or trading in a sector index .Financial/Services Sector over the past 5 years have been: FSLBX Brokers; FSRBX and FRBAX John Hancock Regional Banks ; and FSVLX FidelitySelect Home Finance - another mid-cap banking set that includes...WAMU DME AHM COFI GPT TCB ASFC PHBK CFB FP among its holdings.IUX.X Insurance sub-sector appears to have consistently under-performed the brokers and regional banks sub-sectors in the overall NF.X NYSE Financial Index .SPY S&P-500 Index benchmark is to purchase FSLBX Brokers whenever its chart's 14-day stochastics show it to be over-sold. BTW, this also works with FSPHX FidelitySelect Health Care (drugz) .funds' charts are smoother than sector index charts. They are closing (settlement) daily prices, and so have less noise (being line charts). Because funds are "managed" sector indices, they exhibit what feels like "damping" in the way they move compared to the raw sector index itself, or any component therein.weekly charts generates an even more meaningful, though infrequent stochastic trigger (as well as weekly candlestick sentiments from the daily settlement data) for brokers/regional banks drugz market sectors. Perhaps a confluence of weekly and daily triggers on a sector fund could be interpreted as an opportunity to move 10% of that sector's kapital allocation into sector index calls to amplify leverage, (or to roll them over).periodic T/A tactic in these two funds/sectors will probably back-test well because their growth has been consistent. Indeed, random buys appear to meet SPY and exceed DIA . Such is the effect of good fundamentals, n'est-ce pas ?
