US Equity Sector Plus AlphaDex

Please note: Fulcrum Equity Management is the exclusive marketing agent for Navellier's managed ETF portfolios.

The Navellier U.S. Equity Sector Plus featuring AlphaDEX® Portfolio is designed as a tactical, defensive strategy for investors who seek an allocation within the U.S. equity markets. The portfolio invests in ten AlphaDEX® equity sector ETFs and under certain circumstances can take defensive positions by investing in three bond ETFs staggered along the yield curve.

What is a Sine~Wave® Overlay?

Using a proprietary analytical system of sine waves, the portfolio can quickly switch its exposure between stock and bonds ETFs by measuring “wave heights” of the market. Sine waves are mathematical curves that identify a smooth, repetitive trend around an oscillation – in this case, the oscillation is based around the harmonic waveform of the S&P 500 Index superimposed over other indexes and technical indicators.

When sine waves cross, our research has shown that they trigger a long, short, and neutral signals indicating moving in or out of stock or bond ETFs. In extremely volatile markets, when the “wave heights” become too jumbled to give a clear direction, our system will issue a neutral signal. During such periods, our research indicates it is best to stay away from volatile sector ETFs. When the sine waves signal us to be short or neutral, our portfolios will shift into a diversified group of three bond ETFs that are staggered along the yield curve. We believe such moves help protect capital until market conditions improve.


U.S. Equity ETFs 
First Trust Consumer Discretionary AlphaDex® Fund FXD
First Trust Consumer Staples AlphaDex® Fund FXG
First Trust Energy AlphaDex® Fund FXN
First Trust Financials AlphaDex® Fund FXO
First Trust Healthcare AlphaDex® Fund FXH
First Trust Industrials/Producer Durables AlphaDex® Fund FXR
First Trust Materials AlphaDex® Fund FXZ
First Trust Nasdaq-100 Technology Sector Index Fund QTEC
First Trust Technology AlphaDex® Fund FXL
First Trust NYSE Arca Biotechnology Index Fund FBT

Effective February 15, 2014, the following ETFs were added to the investment universe: Consumer Staples, Financial, Health Care, Biotechnology, and Nasdaq-100. Effective September 28, 2016, the following ETFs were added to the investment universe: Investment Grade Corporate Bonds and Convertible Bonds.

Click below to view a narrated illustration by Louis Navellier of our Tactical Process.

For Demonstration Purposes Only

Proprietary Sine~Wave® Analysis


Market Sector Rotation

Fixed Income ETFs/Defensive

Fixed Income ETFs/Defensive Positions 
iShares® Barclays 20+ Year Treasury Bond TLT
iShares® Barclays 7-10 Year Treasury Bond IEF
iShares® Barclays 1-3 Year Treasury Bond SHY*
First Trust S&P REIT Index Fund FRI
First Trust Utilities AlphaDEX® Fund FXU
SPDR Barclays Convertible Securities ETF CWB
iShares® IBoxx $ Investible Grade Corporate Bond Fund LQD

*Navellier Tactical U.S. Equity Sector Plus featuring AlphaDex® accounts may invest in a cash equivalent, such as money market funds, in place of SHY.

Performance results presented herein do not necessarily indicate future performance; investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of dividends and other earnings. None of the stock information, data and company information presented herein constitutes a recommendation by Navellier or a solicitation of any offer to buy or sell any securities. As a matter of normal and important disclosures to you, as a potential investor, please consider the following: The model performances presented in the accompanying charts and graphs are not based on any actual securities trading, portfolio, or accounts, and should be considered mere “paper” or proforma performance results based on Navellier’s research.

Sine~Wave® Technology Disclosures

Within the context of this report, Sine ~ Wave Technology® is providing technical analytics, theoretical modeling and investment security monitoring services in support of Navellier & Associates, an unrelated Third Party RIA management company which offers Registered Investment Advisory managed account programs and services at the institutional and retail level.

Sine ~ Wave® is engaged in the business of acting solely in the capacity of a technical analytics, theoretical modeling and monitoring service provider to other Registered Investment Adviser “Third Parties” which directly manage client accounts.

Sine ~ Wave Technology® does not directly manage any client assets or engage with or do business with any retail clients of the public.

Our services are exclusively offered to licensed unaffiliated ''RIA'' Registered Investment Advisers and Third Party financial industry professional asset management and distribution network entities such as broker‐dealer firms, insurance, trust and mutual fund companies.

Sine ~ Wave Technology® does not make a market in any security, maintain or have access to client funds, does not engage in any trading activities, does not provide introductions to custodians or engage in any custodial activities or functions, and does not engage in any principal or agency transactions within the retail or institutional marketplace.

The timing and actionable implications of various “Change Points” which are expressed within this visualization series is limited to the management decision making strategies employed by Navellier & Associates to manage a series of Tactical Asset Management Portfolio offerings. The subject portfolios are operated within a construct of a proprietary process of defining “Long”, “Neutral” and “Sell Short” investment periods, and the corresponding actions which are taken within these accounts are the direct result of the timing and methods of decision making of the investment management strategies governing the accounts. The recent announcement and timing of the present S&P 500 market status of “Neutral” is not intended to be viewed as a universal “Sell” recommendation which applies to all market participants. As a clarification, within the construct of the strategies being employed, the market comment status of “Neutral” is not a prediction of future events. The change in status is intended to convey the opinion that the momentum of the previous long term up‐trend has been broken; and that future actions to be taken will depend on the emergence of a newly defined trend in either a long or short direction which has yet to be established. Suitability standards and the details of your age, income, investment experience, liquidity, desired frequency of trading and investment risk profile ~ as well as the specific details of the method and strategy for investment decision which you employ, will form the reasoned basis of the timing and nature of the decisions that you ultimately choose to make. Please consult with qualified investment counsel and review the product discussion + detailed disclosure statements regarding risks which is contained within the product offering documents for investments you may be considering prior to making investment decisions.

In the process of analyzing previous cycles, no direct cause and effect representations can be reliably applied to the present market circumstances... Stock market waveform patterns are not repeating waveforms and as they continuously evolve, no two patterns are the same. Calculations results and signal measurement applications which analyze and react in response to the unique characteristics and extremes of the data stream being characterized will vary accordingly with each use, and over time.

The visualizations contained within this report illustrate various global indexes and primarily focus on the S&P 500 and are intended for information purposes only.  From an actual trading standpoint, it is not possible to trade indexes [theoretical calculations of combinations of securities which make up an industry group or major markets such as the Standard and Poors 500] except to individually trade the underlying securities or to invest in Exchange Traded Funds [ETFs] which are synthetically created simulations of indexes which are designed to correlate to the performance of the index being tracked.

The potential correlation of major market indexes with ETFs that track those indexes is not absolute and can diverge significantly on an intra‐day and cumulative time‐period basis. Depending on the methods and design of synthetic ETF construction, the specifics of daily volatility, the bid to ask spreads and the mechanics of market liquidity, the tracking divergence effect can be profoundly magnified on a case by case basis, especially with inverse and leveraged ETF index Product Offerings.

This visualization summary is not an offer to purchase securities, and is not in and of itself a complete analysis of the investment scenarios which are described. For a detailed discussion of a product offering that you may have an interest in, please consult with qualified investment counsel, and review the product discussion and detailed disclosure statements regarding risks, which are contained within the product offering information documents that you may be considering.

The illustrations contained are for discussion purposes only. The historical “Change Point” scenario results presented herein do not predict or indicate future performance, and do not guarantee a positive result for future transactions. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested.

The historical scenario results as illustrated represent the hypothetical outcome of all of the back‐tested “Long” to “Neutral” “Change Points” for the period of 1991 ~ 2012 for the proprietary Sine ~ Wave Technology ® S&P 500 theoretical modeling market analysis program, which is owned by Helix Technology ® Ltd.

The illustrated scenario analysis from January 1, 2013 through to August 30, 2015 is based on the actual decision making “Change Point” results of the proprietary Sine ~ Wave® modeling program ~ as it is presently being operated by Sine ~ Wave ® Technology and offered within the financial marketplace by Navellier & Associates.

The graphic elements contained in this report are based upon data and visualization sources which include Helix Technology®, Tradestation, Reuters and Yahoo. While the information is based upon sources that Sine ~ Wave ® Technology believes to be reliable, it may be incomplete or condensed information and Sine ~ Wave® does not guarantee its accuracy or completeness.