Gauss Sector BPI Portfolio Review: 3 August 2023

Silver Creek Falls hiking trail.

Updating the Bullish Percent Indicator (BPI) spreadsheet this morning no changes were observed.  There certainly are no Buy recommendations and all the overbought sectors have Trailing Stop Loss Orders (TSLOs) already in place.  Gauss has cash available and I set a number of limit orders as readers will see as this review proceeds.

Gauss is one of several Sector BPI Plus portfolios.  The hypothesis behind this investing model is beginning to bear fruit.  However, we need to go through at least one more bear/bull market cycle to see how this model behaves under such extreme conditions.

Gauss Investment Quiver and Holdings

Below is the investment quiver and holdings for the Gauss.  Since I began writing this blog an e-mail came through indicating Financial (VFH) was sold.  I don’t know if that mail related to this Sector BPI portfolio or one of the other sector portfolios I’m tracking.  I plan to come back to the Gauss and update it before the scheduled September review.

Gauss BPI Recommendations

Keep in mind that the Sector ETFs do not follow the recommendations laid out in the following worksheet.  I use this worksheet to rank the non-sector ETFs.  The fill order for excess cash is the following:

1. ESGV
2. VTI
3. VOO
4. SPY

Gauss Manual Risk Adjustments

Gauss already holds the recommended number of shares of ESGV so we move to the next ranked ETF which is VTI.  Instead of 35 shares as shown, that should read 45 shares.  That many shares will most likely use up the available cash.  If not, I will move on to VOO.

Gauss Performance Data

Over the past 19 months the Gauss managed to edge out the S&P 500 (SPY) by a fraction of a percentage point.  The lead is much larger when compared with the other possible benchmarks.

Gauss Risk Ratios

Since the July review the Gauss flipped the slope of the Jensen from negative to positive, a good signal.  Comparing this August (still early in the month) with August of 2022, none of the risk measurements are as high.  Since switching over to the Sector BPI model the risk measurements have improved.  That was the goal.  Now we will watch the results over the remainder of the year to see if the positive trends continue.

Gauss Portfolio Update: 19 March 2023