It was a relatively quiet week in US Equity markets with the sector closing down slightly on the week and prices still sitting at the top of the 1 Standard Deviation (SD) longer-term downtrend channel and at the center of the shorter-term uptrend channel :
It is still not clear where we might go from here with potential seasonal bullishness fighting the established long-term downtrend.
In terms of relative asset class performance US equities closed the week at the center of the pack with Bonds leading the way with positive returns:
After sitting in Cash for a number of weeks, last week the Cash available in Tranche 2 was invested as shown below:
with portfolio performance looking like this:
So, let’s check this week’s rankings and recommendations and see what we might do with Tranche 3 (the focus of this week’s review). First, from the BHS model:
where we see no Buy recommendations, and secondly from the rotation model:
where we see Buy recommendations for VTI, VEA, PCY and AOR (benchmark fund). This is similar to last week’s recommendations but with PCY replacing GLD as the fourth recommendation.
I will follow these recommendation to get something like this: