One of the more interesting interviews on the Gabriel Wisdom show was with John Del Veccho author of “What’s Behind The Numbers?” and manager of the FLAG ETF – www.flagetf.com. He takes a forensic accounting look at the numbers for the 500 largest capitalization companies ranks them with from A to F. He then builds a portfolio in which 40% are A, 20% are B, 20% are C, and 20% are D and 0% are F. Monthly he rebalances the funds assets based on the latest ranking. The current investments are show on the web site. I noticed that HRB, DIS and UTC are both not in the list of his investments. The fund is up about 12% this year.
The sum of the deviations (1115,1202,1306) is up for the last two weeks – time to invest.
The DJ Wilshire 5000 index is above its 50 day moving average and the average is increasing – time to invest. SmallCapDiscovery is not and the top 20 funds, so I am selling it and investing in SBrokerage&InvestmentMgmt the #04 fund. I own the #01 and #02 funds andSBiotechnology is the #03 fund except its deviation from its 39 week exponentially smoothed average has not been up 2 weeks in a row.
My current investments:
SConstruction&Housing has a price of $57.74, a sell price of $54.85, a relative rank of 07, and is a hold.
SAirTransportation has a price of $48.78, a sell price of $46.34, a relative rank of 10, and is a hold.
SmallCapDiscovery has a price of $28.71, a sell price of $27.27, a relative rank of 21, and I am selling it to buySBrokerage&InvestmentMgmt.
SAutomotive has a price of $48.07, a sell price $45.67, a relative rank of 02, and is a hold.,
JapanSmallerCompanies has a price of $13.49, a sell price $12.82, a relative rank of 01, and is a hold in my IRA#1 and a hold in my IRA#2.
SBrokerage&InvestmentMgnt has a price of $63.59, a sell price TBD, a relative rank of 04 and is a buy for my IRA#2.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – Exchange the balance of my SmallCapDiscover fund for a new investment in SBrokerage&InvestmentMgmt.