Again, our rules forced us to liquidate several holdings this week. The market has been telling us to get to the sidelines for many weeks. This week we partially liquidated our position in $XLC, XLRE & $RWR. All on 3-month RS breakdown. We also liquidated our entire $XHB position on a 6-month break of relative strength.
Of course, we don't purchase what we liquidate, so with relative strength breakdowns abound our choices were limited. We did manage to find 3 ETFs in U.S. sectors and subsectors to add this week. They are: $XLK, $XLF & $XSW. yes, tech is getting hammered, but our rules are based on relative strength performance vs our benchmark, $ACWI. All three of the ETF's added this week our outperforming (at the time of recording) on both the 3 and 6 month basis.
The market does appear to be set-up for a bit of a protracted sell-off. We've been here before, we started the portfolio weeks before the sell-off in Oct 2018. We've weathered a few storms since. Our rules, perhaps a bit conservative, are designed to keep us from suffering losses of account ending proportion. We feel good about our current position, with more than $100K of our allocated buying power currently sitting on the sidelines. ( paper money, of course.) We will stick to our rules and manage whatever Mr. market wants to throw at us!
Of course, we don't purchase what we liquidate, so with relative strength breakdowns abound our choices were limited. We did manage to find 3 ETFs in U.S. sectors and subsectors to add this week. They are: $XLK, $XLF & $XSW. yes, tech is getting hammered, but our rules are based on relative strength performance vs our benchmark, $ACWI. All three of the ETF's added this week our outperforming (at the time of recording) on both the 3 and 6 month basis.
The market does appear to be set-up for a bit of a protracted sell-off. We've been here before, we started the portfolio weeks before the sell-off in Oct 2018. We've weathered a few storms since. Our rules, perhaps a bit conservative, are designed to keep us from suffering losses of account ending proportion. We feel good about our current position, with more than $100K of our allocated buying power currently sitting on the sidelines. ( paper money, of course.) We will stick to our rules and manage whatever Mr. market wants to throw at us!
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