It was a brutal week in US equity markets with indices down ~6% on the week:
We may see technical support at ~360 (SPY) – that would represent a 25% decline on the Year-To-date (YTD). This is not the first time that we have seen 6% weekly price ranges over the past month and markets are getting very volatile. This is often the sign of a pending market bottom, although it can get even more volatile than we are seeing right now – so it may not be quite over just yet.
Checking the relative strength of other asset classes on the week:
we see that US equities fared the worst – although none showed positive returns – so a little difficult to make money this week unless we were short.
What has this meant for the Rutherford Portfolio? :
A modest drop – but still better than the benchmark AOR Fund and still about break-even YTD (so 20+% better than the equity markets alone).
Checking current rankings and recommendations from the BHS model:
we see that recent weakness has dropped DBC to a Hold recommendation from a Buy. The recent weakness in oil has led to the 5% drop in the price of DBC.
We can see this weakness in the rotation graphs:
with SHY looking relatively attractive even though DBC continues to show the greatest strength long-term.
Checking on recommendations from the rotation model shows us the same thing:
so, since I am holding only DBC and Cash in Tranche 1 (the focus of this week’s review) I will not be making any adjustments to the current holdings: