Strategy Weekly – February 13, 2011

This is a summary of several strategies available on vectorgrader.com for those who just visit the blog or who prefer receiving an email.

Market Model

Market Rotation / TAA

Market	ETF	ETF Ticker	Rank	Sum
Small Cap Stocks	iShares Russell 2000 Index Fund	IWM	1	86.00
Real Estate	iShares Cohen & Steers Realty Majors Index Fund	ICF	2	77.31
Commodities	PowerShares DB Commodity Index Fund	DBC	3	65.71
Large Cap Stocks	iShares S&P 500 Index Fund	IVV	4	60.58
International Stocks	iShares MSCI EAFE Index Fund	EFA	5	46.61
Gold	iShares Gold Trust	IAU	6	34.25
Emerging Markets	Vanguard Emerging Mkts ETF	VWO	7	33.87
Short Term Treasuries	iShares Barclays 1-3 Year Treasury Bond Fund	SHY	8	0.38
Long Term Treasuries	iShares Barclays 20+ Year Treasury Bond Fund	TLT	9	-13.14

Sector Rotation

Market	ETF	ETF Ticker	Rank	Sum
Energy	Vanguard Energy ETF	VDE	1	94.60
Industrials	Vanguard Industrials ETF	VIS	2	90.70
Materials	Vanguard Materials ETF	VAW	3	84.35
Consumer Discretionary	Vanguard Consumer Discret ETF	VCR	4	82.85
Information Technology	Vanguard Information Tech ETF	VGT	5	74.13
Telecommunications	Vanguard Telecommun Serv ETF	VOX	6	62.13
Financials	Vanguard Financials ETF	VFH	7	61.44
Consumer Staples	Vanguard Consumer Staples ETF	VDC	8	32.82
Health Care	Vanguard Health Care ETF	VHT	9	31.56
Utilities	Vanguard Utilities ETF	VPU	10	30.31

Bond Rotation

Market	ETF	ETF Ticker	Rank	Sum
High Yield Bonds	SPDR Barclays Capital High Yield Bond ETF	JNK	1	35.29
International Government Bonds	SPDR Barclays Capital International Treasury Bond ETF	BWX	2	4.30
Short Term Corporate Bonds	iShares Barclays 1-3 Year Credit Bond Fund	CSJ	3	3.72
Emerging Market Bonds	iShares JPMorgan USD Emerging Markets Bond Fund	EMB	4	3.18
Short Term Treasuries	iShares Barclays 1-3 Year Treasury Bond Fund	SHY	5	0.38
Treasury Notes	iShares Barclays 7-10 Year Treasury Bond Fund	IEF	6	-5.58

Currency Rotation

Currency	Similar ETF	ETF Ticker	Total Rank	Interest Rate Rank	Valuation Rank	Momentum Rank
Australian Dollar	CurrencyShares Australian Dollar Trust	FXA	2	1	8	2
New Zealand Dollar	WisdomTree Dreyfus New Zealand Dollar	BNZ	2	2	5	4
Swedish Krona	CurrencyShares Swedish Krona Trust	FXS	2	3	7	1
Canadian Dollar	CurrencyShares Canadian Dollar Trust	FXC	4	4.5	4	5
Euro	CurrencyShares Euro Trust	FXE	5	4.5	3	7
British Pound	CurrencyShares British Pound Sterling Tr	FXB	6	6	2	8
United States Dollar	iShares Barclays Short Treasury Bond	SHV	7	7.5	1	9
Swiss Franc	CurrencyShares Swiss Franc Trust	FXF	8	7.5	9	3
Japanese Yen	CurrencyShares Japanese Yen Trust	FXY	9	9	6	6

VectorGrader.com Premium Yearly Subscription Now Available

Here at VectorGrader.com, we are trying to give our members the best value for their money. One way we do this is by adding new features without raising prices (such as the ETF ratings we added several months). Today, however, we are cutting prices for new premium members. Our new yearly subscription plan costs over 16% less than the current monthly plan. There is, however, one small catch. Subscribers can only receive a prorated refund if they contact us within 30 day of their last payment. Don’t worry though, because our new subscription plan still has a built in 14 day free trial period in which you can cancel without paying anything.

We also have some new strategies we are thinking of rolling out in the next several months with which it may be necessary to raise the premium membership price a little. However, anyone who is a subscriber before than will lock in the current price.

Country Rotation – February 2011

This is an update to the country rotation strategy outlined a while ago. It ranks stock markets of developed markets and a few major emerging markets by valuation and momentum.

Since the last update, the top 5 country ETFs rose 3.06%, slightly underperforming the bottom 5  (3.39%), but still outperforming the S&P 500′s 2.94% gain.

Methodology: First, the countries are sorted by each of the metrics individually (Valuation: median earnings yield and p/s; Momentum: the sum of the most recent 12, 6, and 3 month performance), assigning a score of 1 to the top country, 2 to the 2nd from the top, 3 to the third from the top, and so on. The scores of the underlying metrics are then added up, and re-sorted.