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SECTOR ROTATION STRATEGY
 based on Momentum Ranking










SECTOR ROTATION HISTORY SIMULATION



BEGINNING DATE POSITION RETURNTERM (weeks)
1/7/2005 Transportation -4.84% 2
1/21/2005 Energy 44.34% 53
2/10/2006 Transportation 12.54% 20
7/7/2006 Energy -0.34% 8
9/1/2006 Staples -1.52% 5
10/6/2006 Financials 0.94% 1
10/13/2006 Discretionary 7.18% 12
1/12/2007 Technology -2.66% 1
1/19/2007 Discretionary -4.62% 6
3/2/2007 Technology 1.59% 1
3/9/2007 Discretionary -2.46% 1
3/16/2007 Technology 2.70% 1
3/23/2007 Discretionary -1.63% 1
3/30/2007 Technology 2.44% 2
4/13/2007 Discretionary 1.36% 2
4/27/2007 Transportation 0.88% 1
5/4/2007 Energy 8.04% 39
2/8/2008 Staples 2.05% 1
2/15/2008 Energy 18.08% 16
6/6/2008 Transportation -2.11% 1
6/13/2008 Energy -11.20% 5
7/18/2008 Transportation -4.72% 10
9/26/2008 Staples -20.25% 30
5/1/2009 Technology -3.89% 2
5/15/2009 Staples 2.50% 1
5/22/2009 Technology 8.26% 2
6/5/2009 Energy 2.69% 1
6/12/2009 Technology 3.37% 5
7/17/2009 Discretionary 5.13% 1
7/24/2009 Technology 2.24% 6
9/4/2009 Financials 2.88% 13
12/4/2009 Transportation 0.19% 1
12/11/2009 Financials -1.18% 1
12/18/2009 Transportation 1.77% 3
1/8/2010 Technology -1.65% 1
1/15/2010 Transportation -3.92% 1
1/22/2010 Technology -3.23% 1
1/29/2010 Discretionary 12.31% 20
6/18/2010 Transportation -6.51% 3
7/9/2010 Discretionary -1.28% 1
7/16/2010 Transportation 2.23% 4
8/13/2010 Discretionary 9.59% 6
9/24/2010 Transportation 5.32% 5
10/29/2010 Discretionary 2.13% 2
11/12/2010 Energy 1.03% 1
11/19/2010 Transportation 4.13% 2
12/3/2010 Energy 0.12% 1
12/10/2010 Transportation -0.96% 1
12/17/2010 Energy 1.62% 33
8/12/2011 Staples 8.80% 21
1/13/2012 Discretionary 4.66% 3
2/3/2012 Technology 8.80% 8
3/30/2012 Discretionary -1.20% 2
4/13/2012 Technology -1.82% 3
5/4/2012 Discretionary -1.49% 1
5/11/2012 Financials -7.02% 1
5/18/2012 Discretionary 3.36% 4
6/15/2012 Technology 0.39% 1
6/22/2012 Discretionary 1.06% 2
7/6/2012 Financials 2.00% 3
7/27/2012 Discretionary 0.11% 1
8/3/2012 Financials 0.81% 1
8/10/2012 Technology 2.52% 8
10/5/2012 Discretionary -2.86% 1
10/12/2012 Staples -0.39% 1
10/19/2012 Financials -0.68% 2
11/2/2012 Staples 1.34% 3
11/23/2012 Discretionary 0.55% 2
12/7/2012 Staples -0.61% 1
12/14/2012 Discretionary 0.92% 1
12/21/2012 Financials 14.94% 18
5/3/2013 Transportation -0.98% 8
6/28/2013 Financials 4.99% 6
8/9/2013 Discretionary 8.34% 22
1/17/2014 Transportation -1.35% 5
2/21/2014 Technology 1.31% 2
3/7/2014 Transportation 7.55% 16
6/27/2014 Energy -1.62% 2
7/11/2014 Transportation 6.28% 26
1/16/2015 Staples -2.54% 2
1/30/2015 Transportation 4.52% 2
2/13/2015 Discretionary -1.71% 46
1/8/2016 Staples 8.19% 14
4/15/2016 Technology -2.03% 1
4/22/2016 Staples 6.02% 16
8/12/2016 Energy 1.11% 13
11/11/2016 Financials 15.60% 33
7/7/2017 Technology 15.62% 22
12/8/2017 Financials -0.71% 1
12/15/2017 Technology -0.94% 2
12/29/2017 Financials 1.79% 1
1/5/2018 Transportation 3.62% 2
1/19/2018 Financials -0.61% 2
2/2/2018 Technology -4.44% 1
2/9/2018 Financials 4.70% 1
2/16/2018 Technology -1.44% 9
4/20/2018 Discretionary 1.10% 1
4/27/2018 Energy 0.04% 1
5/4/2018 Discretionary 0.84% 1
5/11/2018 Technology 2.58% 4
6/8/2018 Discretionary 1.56% 7
7/27/2018 Technology 1.21% 1
8/3/2018 Discretionary 0.58% 2
8/17/2018 Technology 1.54% 1
8/24/2018 Discretionary 1.79% 1
8/31/2018 Technology -2.67% 1
9/7/2018 Discretionary 1.16% 1
9/14/2018 Technology -5.48% 4
10/12/2018 Energy -8.93% 2
10/26/2018 Staples 2.32% 20
3/22/2019 Technology 0.93% 1
3/29/2019 Staples 0.16% 2
4/12/2019 Technology 2.28% 2
4/26/2019 Staples 0.75% 1
5/3/2019 Technology -3.37% 1
5/10/2019 Staples 3.11% 5
6/14/2019 Discretionary 0.60% 2
6/28/2019 Technology 42.06% 68
10/30/2020 Discretionary 7.50% 3
11/20/2020 Transportation -1.30% 9
1/29/2021 Technology 4.96% 1
2/5/2021 Transportation 10.86% 5
3/12/2021 Financials -1.58% 1
3/19/2021 Transportation 4.90% 3
4/9/2021 Financials 3.16% 3
4/30/2021 Energy 0.00% 13
7/30/2021 Financials 4.24% 5
9/3/2021 Communication -2.73% 2
9/17/2021 Financials 8.09% 5
10/22/2021 Technology 4.64% 12
1/14/2022 Energy 41.42% 52
1/27/2023 Financials 0.39% 3
2/17/2023 Energy 0.58% 9
4/21/2023 Technology 15.87% 11
7/7/2023 Communication 0.78% 2
7/21/2023 Technology -2.82% 2
8/4/2023 Communication -2.55% 3
8/25/2023 Technology -0.29% 6
10/6/2023 Communication 2.33% 5
11/10/2023 Technology 11.50% 9
1/19/2024 Communication 3.81% 1
1/26/2024 Technology 0.24% 1
2/2/2024 Communication 3.49% 9
4/5/2024 Technology -0.50% 1
4/12/2024 Communication -1.38% 3
5/3/2024 Financials 3.16% 1
5/10/2024 Technology 7.46% 10
7/19/2024 Financials 1.31% 1
7/26/2024 Communication 4.32% 5
8/30/2024 Financials 1.97% 9
11/1/2024 Communication 4.09% 1
11/8/2024 Financials 3.10% 1
11/22/2024 Discretionary 4.05% 3
2/14/2025 Financials -6.36% 3
3/14/2025 Communications -0.90% 3
3/28/2025 Financials -5.19% 3

Illustrates applying the momentum formula back in time and rotating at each signal. Holding only the top ranked sector.

The orange Rotation line on the chart is the result of these trades.







CONTRIBUTION TO GAINS



2005 - 2024ytd
HOLDING VS ROTATION
COMPOUND ANNUAL RETURN (CAR)


SECTOR INVESTED THE ENTIRE TIME ONLY DURING ROTATION PERIODS
ENERGY (XLE) 7.4% 17.6%
FINANCIALS (XLF) 5.1% 29.1%
TECHNOLOGY (XLK) 14.0% 25.5%
STAPLES (XLP) 9.3% 2.7%
TRANSPORTATION (IYT) 8.7% 14.8%
DISCRETIONARY (XLY) 10.2% 18.7%
S&P 500 Index 10.4% N/A






DISCLAIMER: This website is for informational purposes only and not investment advice. The past is not an indicator of future performance. Results are hypothetical based on rules applied to the past. Investments can and do lose money.