ETFs, Leveraged ETFs, Sector Funds

[No-Quarter]

The New Year brings a time for reflection, and a time for new ideas.

I still hold both FSPHX (health care), and FSPTX (technology). I should have sold them both earlier, but missed the opportunity. I have been a bag holder ever since waiting for another wave up, and it appears one arrived for both of these funds at the start of this New Year.

I have been reading up on rotation charts some more and am intrigued. Looking at this week’s rotation chart (in the link below) I have decided to try riding the health care sector rotation from the current Red (lagging) quadrant to the eventual Green (leading) quadrant, and watch for its eventual roll-over to signal sell FSPHX. Since the movement in technology sector is much less pronounced on the same rotation chart, I will likely watch for the usual MACD roll-over as the sell signal for FSPTX.

I found interesting this article today that suggests the use of the financial sector and health care sector as ‘trading pairs’ when using a rotation chart. I may do something similar to signal my next set of swing trades.

http://stockcharts.com/articles/rrg/2017/01/rotation-from-financials-into-health-care-two-sectors-at-extremes.html

Good Luck To You!