After a brief scare on Wednesday, U.S. equity markets recovered to close down only ~0.4% from last weeks close and continue to trade just below the $4200 resistance area in the S&P Index:
Implied Volatility remains slightly elevated but nothing too extreme.
As we can see from the performance graph:
the Rutherford portfolio followed the general trend.
So, we check our current holdings:
and current recommendations from the BHS model:
where we see Buy recommendations for VNQ and RWX (US and International Real Estate) and Hold (or discretionary Hold?) recommendations for DBC and VTI. VEA is a recommended Sell so this is a holding we need to look at. But, before making the decision to sell I will take a look at rotational data:
where we see short-term weakness in VTI (and VNQ) – negative vertical movement – and stronger short term strength in VEA (and DBC). RWX looks relatively stable with weak longer term strength. And, looking at recommendations:
we see that VEA is showing as a Buy and VTI as a Sell. So, since I need to add to my positions in RWX, a decision needs to be made between VTI and VEA in order to release the necessary funds for the purchase..
Looking at current holdings we note that, in the total portfolio, we are currently holding a higher percentage of funds in VTI than in VEU so, since these are both representing the equity asset class I will choose to balance the holdings by selling my shares in VTI (choosing to implement the discretionary Hold? recommendation from the BHS model).
Checking the position sizing sheet will show my adjustments for this week:
With 1.65 SD TSLOs in place this will keep my portfolio risk to ~8%.