A lot of churn in our paper ETF portfolio this week. Based on our rules, we liquidated i/2 of our holdings in $XRT and $XSD and the entirety of our remaining position in $XHS. A breach of 3 month RS performance versus our benchmark, $ACWI, triggered those moves. This freed up a lot of buying power. We put the newly freed buying power to work immediately.
We added six tranche's to the U.S. side of our ETF portfolio. Our additions tilted toward energy and financials. This week we added $XLF, $XLE, $XLI, $XOP, $KBE, $XTN.
We also managed 2/3 of our delta neutral portfolio. Rolling two of our $SPY strangles out to MAY expiration to generate more credit and give us time to be right. If we continue to be challenged on these strangles, our next move will be to invert the position.
Watch todays video to see how we use Chaikin Analytics along with our own relative strength rules to manage a paper portfolio of ETF's. We lean pretty hard on the Chaikin OB/OS oscillator to define our risk in each position. Just one of the Chaikin tools we incorporate into our trading plan.
We may be seeing the early stages of a rotation to defensive's. Despite tech's rally back to life, the underlying relative strength is lagging. Watch this weeks macro Monday to see how we use Chaikin Analytics as well as RSMK to track relative strength in the market.
As of the time of this recording our paper money ETF portfolio was down a little, landing at $567,000 for the week. While we noted plenty of relative strength this week in both country 1 & 2, our acquisitions were all in macro, as macro out performed everything in country 1 & 2. This week we added $COPX, $UGA, $USL. Meanwhile, we liquidated 1/2 of our remaining position in $EPI.
Over in our delta neutral portfolio we defended a $SPY strangle that was going against us and we added a third $SPY strangle which is the most risk we allow in this portion of our portfolio.
Watch today video to see how we use Chaikin Analytics alongside our own trading rules to manage our paper ETF portfolio.
Despite a strong rebound in tech this week, our relative strength rules not only kept us from adding tech but continued to force us into liquidations. This week we liquidated portions, or all of our positions in $XES, $XSD, XHS and $XSW. 3 month relative strength vs the $ACWI is remains weak in most parts of tech. On the flip-side, despite the strong week in the bond market, financials continued to show strong relative strength. Ultimately one of these markets will be proven wrong, until then we follow our rules. Energy also kept it's relative strength head up, despite a mediocre performance for the week. That being said, we added or initiated positions this week in $XLF, $XLE, $KBE, $XME, $XTN. Watch todays video to learn how we manage a paper ETF portfolio using Chaikin Analytics alongside our own relative strength based rules.