100 Level

MACD Defined

Yesterday, I wrote a piece on "Sell in May and Go Away," Sy Harding's Seasonal Timing Strategy (STS).  Built into that strategy is something called MACD.  MACD is an acronym for "Moving Average Convergence-Divergence" Trading Method.  I first read about MACD back in 1979 when Gerald Appel published a pamphlet under the same title. In that 22 page pamphlet he … [Read More...]

What Comes After The Strategic Asset Allocation Plan?

Where do we go next after the following plans are in place? Credit cards are paid in full. A savings plan is in effect and money is set aside each paycheck. A discount broker account is open at a business such as TDAmeritrade. The Strategic Asset Allocation plan is in place. Ten to fifteen asset classes were selected for investment. We now come to the difficult and all … [Read More...]

300 Level

Newton Portfolio Review: 20 March 2012

It is again time to check in on the Newton Portfolio.  The following Dashboard shows the Strategic Asset Allocation plan for the Newton, and nearly all the asset classes are in balance.  I am not concerned about the under-target in international bonds as it is counter balanced by overweight in domestic bonds. Portfolio Performance:  Readers who have been following the Newton can … [Read More...]

ITA Index: Making It Work

Building a Customized Benchmark Serious investors monitor and measure the performance of their portfolio(s).  Otherwise, how is one to know if portfolio decisions are adding or subtracting alpha.  Portfolio decisions include market timing, asset allocation, selection of stocks, index funds, ETFs, mutual funds, and professional money managers.  Measuring performance is a … [Read More...]

200 Level

ITA Portfolio Performance Data Sheet: 16 November 2012

While all portfolios declined in value over the past two weeks, the good news is that every portfolio, without exception, gained ground on both the ITA Index and VTSMX benchmarks.  Yes, you read correctly.  Every portfolio picked up basis points on both critical benchmarks. While none of these accounts are particularly set up as defensive portfolios, all reacted this way as none declined as … [Read More...]

8 Dividend Stocks Supercharge the Swensen-Six Portfolio

Eight dividend aristocrats added to the "Swensen-Six" Portfolio boost return, increase yield, without doing extensive damage to the portfolio volatility. The following screen-shots show the original "Swensen" portfolio, a supercharged version, the correlation matrix for the supercharged portfolio, and the "Delta Factor" projections for the supercharged portfolio when … [Read More...]

400 Level

U.S. Equities Is The Place To Be Invested

It has been many weeks since I ran a screen on international markets, particularly individual countries.  I have approximately 40 countries on my list and since it takes the Hoadley optimizer a long time to run such a large number of securities I broke them up into two groups.  In both runs, VTI ranks at the very top.  Here is an example. … [Read More...]

Bullish Percent Indicator: Additional Information

In 1995 A.W. Cohen developed the New York Stock Exchange Bullish Percent Index.  Some technicians call it the greatest market indicator as it gives a broad overview of the market direction.  In our case, we are tracking several markets.  In the data table several market index are recorded as well as several popular ETFs.  The ETFs are on a separate worksheet and are not shown … [Read More...]