The market was unchanged in a relatively quiet week with the Thanksgiving holiday, but I felt the turnaround from the lows on Tuesday was impressive as was continued resilience in the face of supposedly negative economic numbers and news stories.
The best move was perhaps in small caps, shown here via $RUT, which finished at 3-month highs.
That was arguably fueled by the continued recovery in biotech shown here via $IBB relative to $SPY:-
Alpha Capture Portfolio
The Alpha Capture portfolio edged higher by 0.14% this week vs 0.04% for the S&P.
That takes it to +3.2% YTD vs +1.5% for the S&P.
There were no fresh signals this week and we remain fully allocated with 13 names and around 7.2% open risk.
Consumer Discretionary ($XLY) and Technology ($XLK) continue to lead the way:-
They’re followed by Consumer Staples ($XLP) which has staged a strong recovery over the last couple of weeks:-
Then comes Financials ($XLF) and Industrials ($XLI):-
Of the others, Healthcare ($XLV) is again testing the underside of its 200-day, Materials ($XLB) continue to consolidate recent gains, Energy ($XLE)’s recovery has stalled, and I wouldn’t recommend Utilities ($XLU) even to my worst enemy.
With the holiday-shortened week there weren’t many changes to the overall mix of our watchlist, but given we already have a full portfolio I’ve reduced the list slightly in an attempt to concentrate on only the strongest names and most favorable setups. Here’s a sample from the full list of 25 names:-