McClintock Sector BPI Update: 26 August 2026

Seaplane Launching Pier

This morning I posted that Materials is nearly 70% bullish so I set 3% Trailing Stop Loss Orders under VAW for the Carson, Franklin, and McClintock.  As readers will see in a moment, several sectors struck the TSLO mark so we end up with over $10,000 in cash.  Rather than let that money sit idle in a money market, where it earns very little interest, I will purchase more shares of the short-term treasury, SCHO after the market opens.  The same is true for cash sitting in the Carson and Franklin portfolios.

McClintock Sector Holdings

Below are the current holdings in the McClintock portfolio.  Based on sector action this market is weakening.  A few weeks ago the three Sector BPI portfolios tracked here at ITA were holding over half the sectors ETFs.  We are now down to two and those may be sold out of the McClintock before too many weeks pass.

McClintock Performance Data

Since 12/31/2021, or approaching five years, the McClintock generated an Internal Rate of Return (IRR) of 9.68% while the AOR benchmark returned 6.75%.  The McClintock began using the Sector BPI model around the middle of October 2023 so we are approaching three years of data for this portfolio.

McClintock Risk Ratios

All risk ratios are higher than they were a year go so the model seems to be working quite well.  The slope of the Jensen Alpha is extremely high at 0.25.

Keep in mind that any Jensen value greater than zero is considered to be excellent.  Right now the value is 5.1.  It will be most difficult to maintain this high value.

The reason the Treynor is “flying high” is tied to a very low beta value and the portfolio is beating the benchmark.  That combination exaggerates the Treynor, one basic reason as to what I am not overly impressed with the Treynor Ratio.  Pay most attention to the Jensen Performance Index (also known as the Jensen Alpha).

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