Harry Stevens comes to the rescue by cutting through the new Yahoo codes to revive the Kipling spreadsheet. While the H-A candle indicators are not working, we can revert to the Point and Figure graphs which I will explain in a moment. Assume the following is your portfolio. This is a test run for the updated Kipling. When the authors give the OK, this revision will be released to Platinum members.
Baker’s Dozen Portfolio Tranche Recommendations: If this were your portfolio and you are following my Buy and Sell guidelines, the first thing to do is review the Sell rules.
- Sell if the security is under-performing the cutoff ETF, SHY. In this situation we would sell 100 shares of VTI and 100 shares of BRK-B. VEA remains untouched.
- Sell if the security is priced below its 195-Day Exponential Moving Average (EMA). Since we do not hold VNQ, DBC, or TLT we are clear on this rule. VEA remains untouched.
Buy Rules: Let’s focus on the top five performers as listed in column 3.
- The security must rank in the top five. Those are: VEA, RWX, QQQ, TLT, and PCY.
- The security must also be priced above its 195-Day EMA. All five meet this requirement.
- The security must also have a Group rating of 1, 2, or 3 with one (1) the highest. All five meet this requirement.
- The security must receive a code of BX or Buy with increasing X’s in the right-hand column of a PnF Ratio graph. See the final screen shot for an example.
PnF Ratio Graph: RSP is our benchmark for this analysis. 1) We want RSP to be bullish on its own and 2) We seek securities that are outperforming the RSP benchmark. Below is an example where RWX is outperforming RSP. How do we know? If you move to the lower right-hand edge of the graph you will see X’s in the right-hand column (bullish signal) are higher than the prior column of X’s. When this is the case we have a BX code. This is a buy signal. Here is the link for you to try QQQ, VEA, PCY, and TLT for yourself. Just substitute one of these tickers for RWX. Make sure to leave the colon and RSP in place. The results will eventually change, but if you run this test today you will find one of the ETFs is not a buy under this PnF Ratio rule. Which one fails the PnF Ratio test? Try it for yourself.