ITA readers using the Sector BPI investing model take note. Energy (VDE) continues in the oversold zone so it is a Buy. Sectors overbought are: Discretionary (VCR), Staples (VDC), Financial (VFH), Health (VHT), Industrial (VIS), Utilities (VPU), and Real Estate (VNQ). Keep in mind there is a difference between the Point and Figure (PnF) graphs for the sector vs the sector ETFs. Some readers may be using ETFs from iShares or other representative ETFs. I prefer Vanguard ETFs as I become part of the company when I own Vanguard ETFs.
In addition to the seven overbought sectors, Technology (VGT) and Communications (VOX) are hovering in the 69% bullish area. If I held either in the Gauss I would place 3% TSLOs on those two sectors.
Gauss Investment Quiver and Holdings
Trailing Stop Loss Orders (TSLOs) are set for VCR and VDC as both sectors are overbought. VIS is a shard holding left over for some reason. I will likely set a TSLO of 3% for VIS just to clean up the portfolio.
Currently, 11.6% of the portfolio is recommended for Energy (VDE) and the Gauss holds 11.4%. We are OK with the position.
When sectors in the oversold or Buy zone do not use all available cash, we seek buying opportunities with VTI and VOO. That accounts for the large holdings in those two ETFs.
Gauss Performance Data
How well has the Gauss performed since 12/31/2021 or the comparison period for all ITA portfolios? The Internal Rate of Return for Gauss is 8.5% while the S&P 500 (SPY) benchmark returned 7.6%. A slight performance edge goes to the Gauss. Note how much better the investable ETF SPY is performing compared to the actual S&P 500 index (5.4%).
Gauss Risk Ratios
Over the last few months the Jensen has been flat indicating the Gauss and SPY are closely tracking each other. The Information Ratio also shows the same tracking between the portfolio and its benchmark.
The Sortino Ratio indicates the portfolio is growing at a slow rate.
Gauss Sector BPI Portfolio Update: 3 January 2024
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