Pitbull Investor's Mutual Fund Sector Rotation Strategy

MUTUAL FUND SECTOR TIMING

REPORT & UPDATE page 2

For Tomorrow, Monday June 22,1998
Download a new updated file each night by clicking at page bottom or update current spreadsheet manually. Copy and paste the price line below into spreadsheet.

FSVLX FSELX FDCPX FSESX FSPHX

MnyMKT 6/19/98 Thu 52.86 29.24 41.39 24.74 120.04

Current-Still in Money Market - Todays entry would have indicated FSVLX as the top choice if timing allowed.

***NON-TIMED SECTOR ROTATION****

IF YOU ARE USING SWITCHING WITHOUT SECTOR TIMING YOU WOULD HAVE ENTERED FSVLX ON 6/2/98 and would hold that position for 30 calendar days. Obviously this is one period where "buy & holders" have been sucking wind, but remember, just sector switching alone, (without timing) beat buy and hold whips top fund by 40%)
*** DATA ON RYDEX FUNDS****

RYDEX equivelant funds are tracking quite nicely with their Fidelity counterparts and of course offer the advantage of no up front load and unlimited switching without penalty. Spread- sheets for RYDEX funds are available above.

Here are today's numbers:

RYFIZ RYSIX RYVIZ

MnyMKT 6/19/98 Fri 9.83 8.43 8.22

Monday-Still in Money Market - we will follow the Fidelity timing for entry and if Timing had been indicated, RYFIZ would have been indicated.

Here are Fidelity/Rydex symbol substitutions: FSVLX=RYFIZ; FSELX=RYSIX; FSESX=RYVIZ, (Note that some brokers use an "X" instead of a "Z" suffix on Rydex.

Some are still confused as to why we are only following three sector funds in Rydex and five funds in the Selects. 98% of our trade profits in testing came from just these three sectors. Rydex does not currently have an equivelant for Computers and Health care, but we will be adding them as they become available. We feel very comfortable in just considering the three major sectors for rotation.

+-+NEW FOR 6/4+-+

We are in the midst of our RYDEX compatability study which will compare the new RYDEX funds to the Fidelity Selects. RYDEX has provided backup research data on hypothetical fund constructs going back to January, 1993. Previously we have been making the assumption that their selection methods would approximate the Selects. This data has presumably been generated by RYDEX by using the same selection methods that they would have used today. It will be interesting to see how both correllations turn out
******FAQ AVAILABLE***** http://www.wwfn.com/sectorfunds/mfr/mfFAQ.txt .
***SECTOR ROTATION HISTORY WITH TIMING AVAILABLE(1/1/89 to 1/1/98)**** http://www.wwfn.com/sectorfunds/mfr/performance.html

*PREVIOUS PERTINENTCOMMENTARY*

This recent section from 6/19 is repeated as generic for new subscribers in relation to current market conditions.

Public sentiment is firmly bearish now and not a few Gurus are hopping on the "Bear Market" band wagon. It feels lonely being so positive about the market, but somebody has to do it. The more I see these prices grind down the more confident I am for the future rally to come. Fortunately we are not in a buy and hold position with our funds trying to weather our way through all this. I have wanted to see this kind of retracement, (and more), but it just hasn't happened. Too many folks have been too bullish to keep this market from doing its natural correction thing and have been buying the dips all along. Even this time I don't think sentiment will get bearish enough(bullish) to get the numbers where I would like to see them, but we will take what we can get.Every bit of downward pressure makes for a better and more explosive rally scenario when it finally does happen.....

This is expiration week for the S&P, Bonds and Equities, so expect high volatility through Friday. Great time for those short term market players to make money both ways.

Some of you must be wondering why I go on about the markets the way I do in a report specifically geared towards Mutual Funds. The original reason was to give you something interesting or thought provoking while we watched our portfolios slowly appreciate (like watching grass growing). As of late it ends up being something to do while we wait for the right time to re-invest ....
****FUND NAV CHANGES****

We will notify you of all NAV changes due to distributions and dividends and all spreadsheets will be historically adjusted at that time. It is HIGHLY recommended that if you are not downloading nightly you do so when this occurs or your data will be inconsistant.
*****SPREADSHEET DIFFICULTIES*****

If you are experiencing difficulty with the spreadsheets on your disks there are a few things to try.

1.Read the Readme File...

2. Open the file from within Excel; not just by double clicking on it. It is in Excel 3.0 format for compatibility and not all versions open it directly.

3. Open the .vts file from within Excel...it has the same data and is readable from Excel.

3. Download the current updated NAV sheets. from the web site.These are available in Excel compatible and VistaCalc formats.

UPDATED DAILY:

VISTACALC Selects , EXCEL Selects,

VISTACALC Rydex, EXCEL Rydex

1988-1998 history: VISTACALC , EXCEL
If you have any specific questions you can email me at: whford@ix.netcom.com and I will get back to as I have time..

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