Friday, August 17, 2012

Fidelity 11...FREE!!! ....8.17.12

You Fidelity account holders are a tough lot, trying to capitalize on those 30 commission free ETFs and I'm trying to make it work for you, but their sector spectrum is thin with the biggest void being a tech representative. (IVE is the S&P 500 value fund; IVV is the S&P 500 proxy))

Nevertheless here's a true Lazy Man just hold these 11 ETFs in equal dollar amounts...forever.  Holding the top 3,4,5,6,7,8,9,10 just doesn't work...sorry..  The good news is that this setup should really minimize trading costs. The All In 11 model cuts the drawdown by about 40% but you pay the price in totals return.

OK...seriously...I don't really expect anybody to start buying this setup...although it does pay better than any CDs by a factor of about 10.

However, this matrix is useful for providing a day by day snapshot of equity versus bond momentum and for crafting short term trading situations that follow the momentum odds. What's the risk?  The obvious answer is that the markets can be fickle, especially in these periods where news drives momentum.  It's unrealistic to think you can win all trades but you can increase the odds for short term success if you use a a robust toolbox of momentum signals.