Dirac 2026 Portfolio Review: 13 May 2026

Kingdom of the Sun, Vidanta World, Nuevo Vallarta, Mexico

It was a ~1.5% pullback in US Equity markets, as measured by the SPY ETF, that is the benchmark for the Dirac Portfolio. The Dirac Portfolio attempts to beat the performance of the benchmark by rotating between the sectors that compose this benchmark.

Since my last review I have made two adjustments to holdings in the portfolio:

I sold my position in XLV (Healthcare), triggering a small loss, and added 86 shares to my existing position in XLE (Energy). I am also holding ~$36,000 in BIL (proxy for Cash).

Performance to date looks like this:

with the portfolio showing flat performance over the past week compared to the ~1.5% pullback in SPY. In addition I added an Option Hedge (https://itawealth.com/portfolio-hedging/) that is currently showing ~$250 profit:

Checking current recommendations from the Dirac Analysis shhet:

we see Buy or Hold suggestions for the 4 Sector ETFs (XLC – communications, XLE – Energy, XLK – Technology and XLU – Utilities) currently held in the portfolio.

This is good, suggesting that no adjustments are called for. However, one of my goals is to to be fully invested with equal weighting given to each ETF. To reach this goal, current allocations would look like this:

so, currently, I am a little under-allocated in all but XLU (Utilities). With the market (SPY) presently in a pullback/downtrend, and holding no diversification beyond the US Equity markets, I will continue to monitor the portfolio for indications as to where the market/sectors may be going from here before re-balancing.