US equities continued to confirm their bullish trend over the past week although they could not close above the 4300 mark:
4300 is the 61.8% Fibonnaci retracement level from the October 2022 lows to the prior January 2022 all-time high. It is also a significant area of previous support/resistance – notably the August 2022 attempt to break the previous downtrend.
Relative to other major asset classes US equities continue to show strength:
The 4-tranche Rutherford Portfolio presently looks like this:
with performance keeping pace with the benchmark AOR fund:
Tranche 2 (the focus of this week’s review) is presently the poorest performing tranche so we’ll take a look at the rotation graphs to see if there might be some adjustments to be made:
VTI continues it’s rotation in the top right quadrant – but there is a hint that this strength may be weakening in the short term. GLD is rotating into the undesirable bottom left quadrant (weaker short-term and long term strength). A check on recommendations from the rotation model:
shows Buy recommendation for AOR (the benchmark fund), VTI and PCY (International bonds) and a Hold recommendation for VEA. This requires the Sale of current holdings in GLD and a portion of the shares currently held in the benchmark fund: