Baily Lighthouse, Dublin Bay, Ireland
US Equities remain in a low volatility sideways consolidation mode that is not ideal for momentum investing but there has not been too much change in the analysis sheet for the Dirac sector portfolio file:
Four of the five ETFs currently held in the portfolio remain with Buy recommendations with only XLP (Consumer Staples) signaling a Sell.
Checking the Momentum/Acceleration graphs we see the following picture:
with momentum (blue line) oscillating around its 14-period Wilder Moving Average (brown line) and acceleration (green line) pointing slightly downwards although still in positive territory.
A look at the price chart:
still shows XLP in a bullish uptrend channel but approaching the lower boundary of this channel and close to a 5% pullback from its July high.
I will remain patient with this one but will likely sell should price drop below the 5% retracement level at ~$84.34.
No adjustments were made since the last review so we remain in Hold mode and continue to monitor. Performance year-to-date looks like this:
near the yearly highs with ~27% Internal Rate of Return (IRR) and 13% volatility over the eight month period. We remain ahead of our benchmark S&P 500 fund (SPY) that was the goal of managing this portfolio.
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