Portfolio Update & Sector analysis

No buys were triggered for next week.

I'm starting a bit of work on sector analysis, and relative strength between sectors. The purpose of this work is to see which sectors are outperforming the market.

This sort of analysis can be used instead of (or in addition to) an index on/off switch, because such a switch used alone may keep you completely out of the market for a prolonged time in a bearmarket. This may not necessarily be a bad thing but it may deprive us of trading opportunities.

Take a look at property trusts during 2000-2002. Nothing staggering but a fairly significant outperformance of other sectors and of the general market.

The problem with this sort of stuff is that it's hard to backtest anything to do with index switches or sectors because you cannot really purchase historical index/sector constituents from anybody, as far as I am aware.

And it would take a hell of a long time to construct them yourself.

Or maybe we can purchase them from Standard & Poors?

Any suggestions?

Portfolio Update 07/03/08

NCM is to be purchased next week.

Portfolio Update 29/02/2008

Four stocks came up for next week: AGM, HER, JBM, and WPL.

But none will be purchased as the first 3 are under takeover and WPL hasn't met my pyramiding criteria (based on percent profit).

So looks like tomorrow I will get 10mins more time having lunch as I don't have to place any trades!

Portfolio Update 22/02/2008

Three stocks came up for next week: RSP, WHS, and WPL.

RSP is under takeover from Xstrata, so only the others will be bought.

WHS has criminal spreads (and liquidity) but I'm trying to stay as close as I can to TradeSim these days, so all stocks that trigger will be bought as long as I have the cash and the companies are not under takeover.

If I have a choice between stocks then I will use the "bang for buck" principles and rank them in order of ascending stock price as this has added about 2%p.a. in backtesting.

Portfolio Update 15/02/2008

Four candidates triggered an entry for this week, JBM, HER, OST, SGM.

The latter 2 will be purchased next week as the others are under takeover.

Nice to see some green in the portfolio this week!

Portfolio Update 08/02/08

BPT has triggered an exit.

The weekly scan didn't identify any candidates for next week.

Portfolio Update 01/02/2008

Two candidates for next week, HER and CEY.

The former is under takeover, but CEY will make another appearance into my portfolio.

The capital return from CEY was banked this week.