Rising Gas Prices - Frustrating to Consumers But A Boon for the ARTAIS Model - John Rothe | Portfolio Manager, Quant, Tech Geek, And Sometime Superhero To My Kids

Rising Gas Prices — Frustrating to Consumers But A Boon for the ARTAIS Model

One-third of the ARTAIS Fund is invested in a seasonal model based on historical strengths in specific sectors of the market. At the end of January, this model indicated that it was time to switch out of the technology sector and into energy.

So far the rise in energy prices has worked well for the seasonal model:

XLE breaks out of sideways trading pattern

 

Fuel prices also look to be on the verge of a multi-month upward rise as the economy starts to recover:

 

Golden Cross in Gas Prices

 

Recently a golden cross pattern emerged in gas prices — an indication that this is potentially the start of a multi-month trend. (Note the “gap up” in price at the time of the golden cross.) This rise should be beneficial to the ARTAIS Fund model, which will hold energy until the end of May.

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