McClintock Portfolio Review: 21 November 2023

California Mission

McClintock is another Sector BPI Plus portfolio up for review this morning.  No change is required, but if the portfolio held Financials (VFH) I would be placing a 3% Trailing Stop Loss Order (TSLO) under the ETF.  Yes, the McClintock holds one share of VFH, but this is insufficient to create a sell order.

I checked the Bullish Percent Indicator (BPI) data before beginning this blog and Financials rounds up to where it just makes it into the overbought zone which is 70% or higher in the percentage of bullish stocks within the sector.

McClintock Investment Quiver and Holdings

Below is the investment quiver and holdings for the McClintock.  The last sectors to call for a Buy were:  Materials (VAW) and Staples (VDC).  Materials is slightly over budget while Staples (VDC) is far over the recommended percentage.  Nothing to worry about as the percentages for the sectors found in the third column from the left are the minimum percentages when the particular sector called for a Buy.

McClintock Manual Risk Adjustments

I could have bypassed this worksheet as no changes are required for the McClintock.

Just another word about Financials.  As mentioned above, VFH would have a 3% TSLO set under it had this sector been fully populated.  When sold I would then run a performance check between VFH (cap-weighted ETF) and RSPF (equal-weighted EFT).  Right now RSPF has the better five-year performance record.  This being the case, I would purchase shares of RSPF when the Financials next called for a Buy.  This will become clearer when the next Sell-Buy cycle calls for action.

McClintock Performance Data

Over the past 23 months the McClintock is in a dead heat with the S&P 500 (SPY).  This is a switch as the McClintock was slightly ahead of SPY when last updated in October.  This slight reversal tells me that the SPY benchmark is performing a tad better than the combination of sector ETFs.

McClintock Risk Ratios

Based on the Information Ratio the McClintock lost a little ground to the benchmark since the October update.  When we employ several other metrics, as is the case with the Jensen Alpha, the McClintock improved over the last update.

Once we clear November and December of 2022, the slope of the Jensen is likely to turn positive.  If this happens the McClintock will move up in the portfolio performance rankings.

The McClintock is set to run until the December review.  Should the owner of this portfolio add new cash to the account I will likely set a limit order to pick up a share of VOO as no sectors ETFs are in the oversold zone.  Otherwise, I’ll do nothing to this portfolio.