We remain at our cap in tech but added to several of our U.S. sector 1&2 positions this week. In U.S. Sector 1 we added XLY and XLB. Sector 2 saw us add XHB,XHE,XRT. Additionally, there we no forced liquidations this week. Watch todays video to see how we use Chaikin Analytics along with our rules to manage a simulated ETF portfolio.
Today, we used macro-economic analysis of futures and ETFs and Chaikin Analytics to make assumptions about the market. We are bullish, but expect a dollar retracement of its recent breakdown to slow the pace of commodities and metals. But, at worst a minor pullback. More likely some sideways consolidation before another move higher. Institutions are piling into metals and commodity based ETF's. Even the dryships ETF is involved. After our analysis, we compare our findings to Marc Chaikin's weekly investor note. We appear to be on the same page.
Despite recent price appreciation, our rules forced us to liquidate our remaining gold position. Golds long sideways consolidation has caused relative strength to fall below our relative strength benchmark, ACWI. Gold was not alone in liquidation this week. We will likely look back at this week as a whip-saw in the case of a few of our liquidations, including FXI, but must follow our rules. Turning to acquisitions, silver and copper met our rules as well as Germany, Taiwan and Sweden. Watch today's trading video to see how we use Chaikin Analytics along side our own rules to manage a simulated portfolio.
Relative STrength Wednesday ( tuesday)
A day early this week, regardless our relative strength wednesday highlighted continued strength in materials. The rotation into materials has been ongoing for several weeks,. XLB now sits atop our relative strength analysis along with the XLK. XLE and XLRE continue to be the laggards of the recovery. Watch todays video to see how we use Chaikin Analytics along with our proprietary scoring method to gauge and track relative strength in the market.
Our Macro Monday analysis revealed widening bugle, as more SPY sectors are now outperforming the SPY it self on a fundamental basis. We also note the SPY Bull, Bear ratio now approaching 2.0 while overbought. We also dive into our newest addition to Macro-Monday, RSMK analysis.
On Thursday, we managed our ETF portfolio, using 3 - 6 month relative strength analysis and Chaikin Analytics.
Our trades for the week above. Our portfolio composition and net liquidating value below.
RELATIVE STRENGTH WEDNESDAY
Continued strength in materials this week, now ranking second in our analysis. Another observation from today's Relative Strength Wednesday, money flow has turned positive in nearly every sector we track. Todays short video shows you have we use Chaikin Analytics in combination with our proprietary scoring system to gauge relative strength in the market on a weekly basis.
Our macro-monday analysis shined a little light on defensives gaining strength, utilities in particular. However, our stance remains mostly bullish as the bull : bear ratio has now creeped just above 1.0 The RMSK indicators we have incorporated into our macro monday meeting are also painting a bullish picture with dry shipping index $BDRY showing sustained strength along with consumer discretionary $XLY Watch the video above for our complete macro monday.
sEctor and Subsector Relative Strength Trends
Macro rel Strength
This week we managed the International and Macro side of our simulated ETF portfolio. Despite recent price strength wee continue to liquidate our gold position based on our rules. Golds long consolidation near highs has caused relative strength to wane. On the buy side in macro, we added to our silver position. We added more risk on the international side this week than in weeks past, as relative strength in some international ETFs is finally showing up. Our purchases below. Note: we would have purchased more Q's, however, based on our rules we our maxed on Q's on the international side of our simulated portfolio. Watch todays video to see how we use chaikin Analytics and relative strength to manage our paper money portfolio.
relative Strength wednesday
We discover a little jockeying for position mid-pak during this weeks relative strength Wednesday. Discretionary and materials flip-flop, while financials appear to be running on fumes. Watch this weeks video to see how we use Chaikin Analytics to identify relative strength in the market.