I’m reviewing the Dirac Portfolio mid-day today so as to avoid severe overload of information as End-Of-Month (EOM) reviews become due. We’ll start with a quick look at the Dirac Portfolio quiver that is comprised of 40 stocks (rather than ETFs) that are considered for inclusion in the portfolio:
At the present time the portfolio is holding 18 stocks as shown above. Here’s how the portfolio has performed since inception in January:
The portfolio survived the “Covid Crash” in March – through the placement of trailing stop-loss orders (TSLOs) – and was able to get back into the market reasonably quickly in April. The portfolio is presently up ~28% Year-To-Date (ignoring the $5k infusion of Cash in March) – really quite impressive.
So, let’s take a look at current rankings and recommendations:
where we are still seeing a lot of green in the HA signals (and in price relative to EMAs). For this portfolio I am using the BHS model with no “target” filter (because I want some degree of diversification) and fast response to short-term price action with the use of 3- and 5-day look-backs for the HA signals. I also have the BL/SH option turned on (“Yes”) with a 10-day measurement of the slope of the Linear Regression Projection curve. Look-backs for the basic momentum slopes (LRS1 and LRS2) are set at the default 60- and 100-day values. I have chosen to limit the number of assets to be held to 20 – hopefully to allow for diversification within the single (US Equity) asset class.
A few adjustments are called for and these are shown in the following figure:
I will be selling 3 assets (ADSK, LRCX and XLNX) and adding 5 assets (AMZN, CHTR, EL, EW and NFLX) to bring the total number of assets held up to the maximum level of 20 stocks.