As we noted last time, just using price change as the way to make our selection of the top Fidelity Select Fund, has historically been profitable, but can be volatile and have some breathtaking drawdowns along the way. We’ve also written in the past about the problems with volatility when trying to identify the best mutual funds.

As an example, take a look at the plot below. It shows some recent price action from FSVLX and FSCGX for about one month. As you can see, they both have about the same percentage price change over the last month, but the red line (FSCGX) is much less volatile, and just looking at it you would suspect that it is more likely to be in a true uptrend than FSVLX over this same time period.
More on Choosing the Best Mutual Funds | Why Worry About Volatility

We’ve written before about using relative strength and sector rotation as our way to find the best Fidelity funds. One simple example is shown in this article about a simple Fidelity Select sector rotation system using just one Select fund at a time. That simple example uses just the one month percentage change in price as the strength metric, and it has done quite well over the years. But it is fairly volatile.
More on Choosing the Best Fidelity Select Funds

The most common question: How do we make our mutual fund and ETF trading system selections? Ours is a system based on sector rotation using a relative strength. We touch on this in our fund trading course, but we often get asked to supply more information on our systems. Today we will start a small series of postings on just how we select our funds.
More on The Best Mutual Funds and ETF Trades | Choosing the Best Mutual Funds

In a previous article on gold mutual funds, we explored the impact that holding a postition in gold mutual funds could have on the volatility and risk of your overall portfolio. The impact was not as great as you would think given the standard advice to hold a metals position to diversify your portfolio.
More on Gold Mutual Funds to Diversify Your Portfolio

Many investors like to use narrow sector index funds as a good blend that captures some of the trending tendencies of individual stocks, but with significantly less volatility as a vehicle for a sector rotation system.
More on Narrow Sector Index Funds for Sector Rotation Systems

There was another interesting article on Marketwatch today about the effectiveness of the old 39 week moving average as a market timing tool. You can read about it at Hulbert on the 39 Week Moving Average. The interesting thing is this was originally made popular by Doug Fabian in his old Telephone Switch Newsletter. His son, Dick Fabian, seems to have moved away from the basic tools made popular by his father, however, if you look at his track record, it seems that he would have been better served by sticking to what Dad taught him.
More on 39 Week Moving Average - Does It Still Work?

Lindsay at Wallstrip tackles seasonality….

Source: Michael Covel: Author of Trend Following

The first of May is upon us, and every financial journal seems to have some article about the merits of a seasonal strategy for getting in and out of the market. While there is something to be said for it’s performance long term, we’ve previously taken a look at the performance of seasonal trading with our portfolios, and adjusted it somewhat.
More on Sell in May and Go Away - Does it Work?