Dirac 2026 Portfolio Review: 13 February, 2026

Cirque du Soleil Theatre lit up at Night, Vidanta World, Nuevo Vallarta, Mexico

The objective of the Dirac portfolio is to try to beat the performance of the broader US Equity markets, as represented by SPY, by rotating holdings between sectors that comprise the benchmark. Currently holdings look like this:

with seven of the ten sectors available in the quiver being held in the portfolio.

Since the last review, two sectors, XLY (Consumer Discretionary) and XLK (Technology) have been sold out of the portfolio with small losses (~$454 total):

with the “Cash” generated currently being held in BIL (Short-Term T-Bills) as I monitor the portfolio looking for new entries.

Currently, recommendations from the analysis sheet look like this:

The Sector that I am watching closely is Financials (XLF) that is triggering a Mean Reversion Buy signal with positive acceleration but momentum lower than the benchmark SPY Fund. At the moment these two signals have turned over a little and are pointing downwards, but if these reverse I will add XLF to the portfolio.

I am also watching XLC (Communications) as this is looking as though it could soon trigger a Sell recommendation with both momentum and acceleration turning negative:

Performance of the portfolio to date looks like this:

nicely outperforming the benchmark SPY Fund that is currently showing a small loss since inception.