Strategy Central

[Walkingshadow]

Hi Kovu,

I agree with your strategy, I was considering the same thing. It makes sense to me to use this as a foundation for a trading strategy that flips a few leveraged sectors long and short, e.g. oil/gas, gold, and semis. When I say "foundation" I mean a long-term hold, PROVIDED the long-term and intermediate-term trends in the indices remain uptrends. I would probably not hold the fund through intermediate term corrections, however it held up very well during the last correction. Overall, it broke out even.

The beta is 1.25, which is surprising looking at the chart.

I notice that there is a reasonable correlation with $OSX, but the $OSX outperforms the fund. The correlations with the SOX and the OIX are tighter. Looks like they might have shifted out of the SOX around the end of February.

I don't understand how UMPIX can hedge anything, unless you are short the broader indices or some sector in the Midcap or SPX.