The Sector Rotation II model uses proprietary algorithms to determine the best timing for long and short positions. In bullish markets, both short- and long-term, the portfolio invests in leveraged sector securities. The model’s goal is to stay fully invested in equities during bull markets while limiting exposure to high-probability profit days in bear markets. Activity is usually monthly in bull markets, but during bear markets, the model increases activity, executing multiple trades to reduce volatility and achieve positive returns. In severe bear markets, the portfolio may use leveraged inverse securities.