Change to sector model

Quick note on the sector model.

After some back-testing it appears that the sector model is more consistent when holding the top two sectors instead of just one.

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I’ll keep the current numbers as reported, but going forward I’ll track the top two positions.

There are two ways to do this. One way is to hold both at the same time (which the blog will track). Another way is to buy in the first position (currently XLU), hold in the second position (currently XLV), and sell in the third.

The second method should approximate the performance of holding both positions, while trading less often and eliminating whipsaws.

So then, the model will change from:

XLU

To

XLU & XLV.

Tim