Our ETF portfolio ends the year at nearly $521,000(paper money) In our final trading meeting of 2020, we managed the international and macro side of our simulated portfolio. On the macro side, $TAN and COPX have been huge winners for us. We recall buying them thinking we were about to get whip-sawed, but following your rules, holding your nose and sending the order works out. We continue to liquidate the $QQQ position that is part of our Country one holdings. Relative Strength in the Q's vs our benchmark, ACWI continues to under-perform, so we continue to liquidate. We also force liquidated our 4XLY position in order to make room under our cap for our one addition this week. We added 1 trance of $GBTC, a bit coin ETF. Another one of those times that we think we will get whip-sawed. Once again, we are sticking to the rules, holding our nose and sending the order. We'll see. Thanks for joining us and exploring the Chaikin Analytics App in 2020! Look forward to whatever Mr. Market has in store for us in 2021.
Our macro-Monday relative strength analysis across the globe gives very few indications that big money is positioning defensively ahead of any impending bearishness. Rotation into commodities is usually the last act in the the play before investors begin embarking on a longer term course correction. And that's most certainly what we're seeing as investors looking for investment returns in dollars.
Latin America holds its persistent relative strength compared to rest of world (ROW), even against a weak dollar (UUP) and stronger SPY, which appears to be regaining relative strength rank over the past four trading weeks after a period of large cap stock consolidation. Very Bearish rated China (FXI) continues its relative weakness vs. ROW, and since it's 40% of EEM, some relative weakness has now crept into emerging markets over the past eight trading weeks. TLT remains weak relative to to US large cap stocks (SPY), developed economy stock markets outside of the US (EFA) and global high yield corporate bonds (HYG). It's a weak dollar market with very little appetite for defensive names. Signs of bullishness are everywhere for global stocks.
Once we add commodity stocks and US small caps (IWM) to the analysis, the late stage bull market picture begins to emerge. Relative strength in Copper remains persistent. Emerging strength in oil (USO) and ag (DBA), a return to strength for precious metals (SLV and GLD) and overall rotation into into the broad commodity basket ETF DBC, are all priced in dollars and tiered just above stocks in terms of relative performance. Price action is bullish with market participants positioning for more gains to come.
When we sharpen the focus and consider only US sectors, other than a one month bounce up in relative strength of healthcare stocks (XLV largely driven by improved recent price action in biotech and health care equipment stocks), we're just not seeing rotation into traditionally defensive areas of the market like staples or utilities. Other investors are likely looking for holes in the market, just like we are. In today's video, in addition to reviewing the price action and relative strength of different silos in the global economy, we use the power of Chaikin Analytics, which includes quantitative fundamental metrics to improve our trading accuracy.
ETF management Thursday
This week we, for the first time, we see several U.S. sectors slowing. Our rules forced us to liquidate several U.S. sector one holdings. We sold 1/2 of our positions in $XLB, $XLK, $XLY an 3 month RS breakdowns. We also liquidated our entire XLF position on a 6 month RS breakdown. Watch todays video to learn how we manage our simulated ETF portfolio using the Chaikin Analytics App and see which ETFs we added to our paper portfolio.