Rutherford Portfolio Review (Tranche 2): 24 November 2023

Rainbow through the “Mist” at Niagara Falls, Canada

It was a relatively quiet week in US markets as many investors celebrated Thanksgiving:

The SPX is still sitting below the resistance zone at ~4600 that we really need to see broken before the recent uptrend channel can be considered sustainable.

Most other markets/asset classes were also quiet, leaving US equities near the top of the list:

With the Rutherford Portfolio positioned very conservatively with significant cash:

returns continued their slow upward grind but are still slightly below the benchmark level of the AOR Fund.

Checking the rotation graphs:

we are still not seeing any significant positive movement in the desirable top right quadrant that would suggest significant strength. Moving to the recommendations generated from the rotation algorithm:

we see Buy recommendations for PCY and VTI and a Hold recommendation for AOR. Thus, of the current holdings in Tranche 2 (the focus of this week’s review), only DBC (Commodities) is a recommended Sell.

Consequently, this week’s adjustments will look something like this:

although I will only be selling 249 shares of DBC and enough shares of AOR to generate the cash required to Buy the recommended holdings in PCY and VTI. I will continue to hold the balance of shares in AOR and will not add to holings in BIL. This will save a little in commissions withought significantly adding to risk.