The Great Rotation continues...
Week 51 - Weekly Equity Update
What a crazy week that was!
The combined indicator is still max long. VIX flip continues to fall as old higher prices disappear. Coming into last week MOMO/Trend were very close. The faster reaction of momentum pushes it a little higher. If we see any weakness moving forward, we will get a little earlier heads-up.
This week's portfolio makeup keeps us overweight: Comms, Discretionary, Financials, Industrials and Tech. Financials fall back a little after many of the Insurance names that have been a large part of the portfolio have weakened.
Energy still has no names in the portfolio and has lagged overall during this period of strength.
Some names are starting to move into positive momentum but must regain trend. Is there a possibility of a catch-up trade?
These are the additions and removals as we move into this week.
The current positions and the gains/losses since entry. There are a total of 13 new additions. Some new faces some old. ANET we were recently able to capture a ~27% gain. AAPL finally makes it into the top 50 after its hiatus
Below are the positions we have closed out so far in December.
Coming into this week we have 45 longs and 5 neutral positions.
AIZ, UNH, MOH, XEL and EA are all neutral.
What does this mean?
How I treat the portfolio is I equal weight all positions. A neutral signal for me means I reduce to half of the max. 100/50 = 2% therefore 95% allocated and 5% cash.
This is a visual to show where the tickers are trading in relation to their momentum and trend levels.
Here are all 500 names in SP500 by sector.
