Fidelity Sector Rotational System Going to 66% Cash

Because the S&P 500 closed beneath the 50 day moving average, version 1 of the Fidelity Sector Fund Rotational System will be selling all funds that have met the minimum 30 day hold time. This means that FBIOX and FSHOX will be sold at today’s close. No other funds will replace them until the S&P 500 closes back above its 50 day moving average. One fund will continue to be held, FDCPX, because the minimum 30 day hold has not been satisfied.

For version 2, none of the 3 funds held have satisfied the 30 day hold requirement. Thus, none will be sold, even though the moving average filter has kicked in.

Look at the right side bar under Categories for more information on these Fidelity Rotational systems.