November | 2020 | iMarketSignals

This strategy exploits the anomaly that equities perform best from November to April, and less so from May to October during most years.
ETFs (XLV, XLI, XLY, XLB) have historically performed best from November to April, and ETFs (XLK, XLP, XLU, QQQ) have done better than the first group from May to October.
The super-sector models termed “aggressive” and “defensive” combine, respectively, the Top5(Sector)Select models for ETFs (XLV, XLI, XLY, XLB) and ETFs (XLK, XLP, XLU, QQQ), all previously published on Seeking Alpha.
This strategy invests alternatingly in the aggressive- and defensive super-sector models during their respective “good” 6-month periods.
From Jan-2000 to Nov-2020 a backtest shows that this strategy would have outperformed the SPDR S&P 500 ETF Trust (SPY), producing an annualized return of 23.3% versus 6.1% for SPY.
NOTE: Elsewhere we refer to the “aggressive” season as the winter season, and conversely the “defensive” as the summer season. This model switches all holdings bi-annually end of April and end of October.