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Small Cap Fund Market
Timing
Stock Marketing Timing Signals for Active Small Cap Mutual Fund Timers
The Small Cap Fund Timer uses Fib
support and resistance analysis and Elliott Wave pattern analysis
to determine current and future market trends. Our proprietary
small cap trend indicators must confirm our analysis. At this
time, the Small Cap Market Timer goes either long (bullish small
cap fund position) or to cash (bearish small cap fund position).
Fund switching (buy/sell) signals are non-discretionary. No emotions
are involved.
See the Small Cap Fund Market Timer performance
record.
Over time, it has become clear to us that
the extreme volatility of small cap funds makes trading short
(bearish) small cap positions a losing strategy. Accordingly,
this strategy goes to cash when market timing sell signals are
issued.
The proprietary market timing trend indicators
make buy and sell decisions based on price action of the Rydex Russell 2000 Advantage - RYMKX, although subscribers may use any small cap
index funds that are available through other mutual fund companies.
Volatility is reduced by being in
cash during declining markets, never being invested during bear
markets, while still realizing excellent results.
Emailed alerts are sent to all subscribers
for every trade, and the Small Cap Timer report is also updated,
by 9PM, EST the evening "before" any change is executed.
The Small Cap Timer is designed to
allow only very small losses and always be on the right side of
all bullish small cap trends. The proprietary small cap market
timing trend indicators used in this model create specific buy
and sell signals. There is no emotion involved in the decision
making. The small cap timing system has been traded in real time
since 2002 and back tested through the beginning of 2000 so that
its performance in both bull and bear markets could be measured.
The below results compare a buy & hold strategy of the Russell 2000 Small Cap Index, to taking long
positions only in the Rydex Russell 2000 Advantage when our market timing
indicators turn bullish, and moving to cash when our market timing
indicators are bearish.
Small Cap Mutual Fund Timer
Uses Long (bullish) & Cash (bearish) Positions
2000 - 2006 Small Cap Market Timing Results
|
2001 - From December 29, 2000 - December
31, 2001 |
| Russell 2000 Index * buy
& hold |
+
1.0 % |
| Small Cap Timing
* Rydex Mekros Fund |
+ 23.5 %
|
| 2002 - From
December 31, 2001 - December 31, 2002 |
| Russell 2000 Index * buy
& hold |
-
22.1 % |
| Small Cap Timing
* Rydex Mekros Fund |
-
3.6 %
|
| 2003 - From
December 31, 2002 - December 31, 2003 |
| Russell 2000 Index * buy
& hold |
+
45.4 % |
| Small Cap Timing
* Rydex Mekros Fund |
+
40.1 %
|
| 2004 - From
December 31, 2003 - December 31, 2004 |
| Russell 2000 Index * buy
& hold |
+
16.9 % |
| Small Cap Timing
* Rydex Mekros Fund |
+
27.3 %
|
| 2005 - From
December 31, 2004 - December 30, 2005 |
| Russell 2000 Index * buy
& hold |
+
3.3 % |
| Small Cap Timing
* Rydex Mekros Fund |
+
9.5 %
|
| 2006 - From December 31, 2005 - December 31, 2006 |
|
| Russell 2000 Index * buy & hold |
+ 15.1 % |
|
| Small Cap Timing * Rydex OTC Fund |
+ 24.7 % |
|
| 2007 - From December 31, 2006 - December 31, 2007 |
|
| Rydex OTC Fund * buy & hold |
- 7.1 % |
|
| Rydex OTC Fund * timed |
- 3.9 % |
|
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