Vacation over. I’m back from the Banks, North Carolina Outer Banks that is, to fulfill more government contract consulting work (my day job). The markets stop for no-one, so today, like every other trading day, things went up, and things went down. Around noon I checked in, and we had a signal in REAP Group #6 to sell some ING Canada (TSX:IIC) to move into Horizons BetaPro Ag Grains Bull+ ETF (TSX:HAU).
In July so far there have been 8 re-allocations. Out of the 16 buys and sells, 5 have involved commodity ETFs, 2 short equity ETF, 2 leveraged long equity ETFs, and 7 stocks. That’s a pretty good balance, showing that the reduced correlation between stocks and leveraged and commodity ETFs is generating a solid pace of re-allocation signals. April had 9 re-allocations. With 8 trading days to go in July, we could easily top that this month.
July has featured the participation of natural gas and grains in their recent sharp respective pullbacks. The short side provided 3 sells from its rise in value, and the almost completely sold off long positions in both natural gas and ags are now starting to rebuild with a buy each.
The most successful re-allocation this month so far this month has been moving a large chunk of the natural gas short ETF into the ProShares financials 2x long ETF at $16.36, just before the latter surged to its current price of $20.32.
Today then we had the following trades …
| REAP TRADES | ||||||||
| # | Trade | Qty | Stock | Symbol | Price | Grp | ||
| 62 | Sold | 33% | ING Canada | IIC | @ | $38.04 | 6 | |
| 62 | Bought | 110% | HBP Ag Grains Bull+ ETF | HAU | @ | $15.40 | 6 | |
| Reap methodology detailed in the blogroll under “My Portfolio” | ||||||||
| Qty % are amount by which shares counts are decreased/increased | ||||||||
And REAP is still stubbornly holding its lead on the S&P500 - by 8.8% in 2008 …
| PORTFOLIO SUMMARY | 21-Jul-08 | ||||
| (in $C, adjusted for $US exchange rates) | |||||
| PORTFOLIO | S&P500 | S&P500 | SP500 $C | REAP | vs S&P |
| Reference Date | Start | Last | % | % | Var. |
| Inception MAR 07 | 1395.4 | 1260.0 | -26.6% | -25.9% | 0.7% |
| Re-start OCT 07 | 1565.2 | 1260.0 | -18.7% | -13.6% | 5.1% |
| 2008 Year to Date | 1468.4 | 1260.0 | -12.9% | -4.1% | 8.8% |
| Discretionary Trading P&L (included in above results) | -5.5% | ||||
| Dividend Yield (current) | 0.89% | ||||
| Canadian dollar | Last | Inceptn | Var. | Restart | Var. |
| 0.9988 | 0.8547 | -16.9% | 1.0069 | 0.8% | |
| Currency Mix | |||||
| Canadian Investments/Cash | 33.7% | ||||
| US Investments | 60.7% | ||||
| Other (country ETFs) | 5.7% | ||||
| Market Bias | Long | 50.0% | |||
| Cash | 0.7% | ||||
| Net Short | 24.7% | ||||
| Net Long | 74.6% | ||||
| Theme Mix | |||||
| Energy / Commodity | 14.5% | ||||
| Short Commodities | 16.3% | ||||
| Environment / Infrastructure | 8.4% | ||||
| Financial | 10.8% | ||||
| Health Care | 10.1% | ||||
| Technology | 13.9% | ||||
| Short Equities | 8.4% | ||||
| Transportation | 8.3% | ||||
| Hospitality | 3.0% | ||||
| Asia | 5.7% | ||||
| Cash | 0.7% | ||||
| Portfolio Notes | |||||
| Inception date is when I started tracking portfolio performance in | |||||
| this blog. I track it to reflect total performance after initial mistakes | |||||
| and discretionary trading losses. A more accurate representation | |||||
| of REAP’s “pure” performance is as of 10 Oct 07, when I | |||||
| re-established it after selling out the portfolio twice due to | |||||
| sub-prime systemic concerns. | |||||
| CANADIAN MARKET HOLDINGS | |||||
| Stock | Sym | Cost | Last | Gain % | Weight |
| Husky Energy | HSE | $42.12 | $41.82 | -0.72% | 3.2% |
| HBP NGas Sht ETF | HND | $10.77 | $10.37 | -3.67% | 3.2% |
| HBP Gold Sht ETF | HGD | $9.98 | $8.41 | -15.70% | 3.4% |
| ING Canada | IIC | $41.12 | $38.19 | -7.13% | 2.3% |
| HBP Ag Grains Bull+ ETF | HAU | $16.07 | $15.85 | -1.40% | 2.1% |
| HBP Oil Sht ETF | HOD | $11.13 | $7.73 | -30.58% | 5.4% |
| IGM Financ’l | IGM | $42.08 | $39.20 | -6.84% | 2.4% |
| HBP Ag Bear+ ETF | HAD | $22.35 | $22.89 | 2.43% | 4.4% |
| Precsn Drilling | PD.UN | $17.65 | $24.00 | 35.98% | 4.0% |
| HBP NGas ETF | HNU | $27.88 | $28.40 | 1.85% | 2.6% |
| US MARKET HOLDINGS | $C Adj | ||||
| Stock | Sym | Cost | Last | Gain % | Weight |
| Broadcom | BRCM | $26.12 | $27.44 | 5.19% | 1.7% |
| Gen & Wyom | GWR | $25.56 | $39.56 | 54.98% | 4.3% |
| PrSh S&P Sh ETF | SDS | $63.30 | $68.70 | 8.66% | 2.0% |
| PrSh Ultra Financ’l | UYG | $25.16 | $20.42 | -18.73% | 6.0% |
| ISh Australia ETF | EWA | $26.59 | $26.22 | -1.29% | 2.7% |
| Formfactor | FORM | $26.57 | $20.18 | -23.95% | 3.0% |
| Harley Davidson | HOG | $49.90 | $37.25 | -25.26% | 4.0% |
| Roch. Medical | ROCM | $12.37 | $10.97 | -11.22% | 2.6% |
| Forest Labs | FRX | $35.70 | $35.29 | -1.04% | 4.4% |
| Nvidia | NVDA | $23.05 | $11.63 | -49.49% | 3.4% |
| PrSh Rus2000 Sh ETF | SKK | $81.18 | $72.98 | -9.99% | 2.6% |
| Buff Wld Wings | BWLD | $29.29 | $27.13 | -7.26% | 3.0% |
| Cree Inc | CREE | $26.96 | $20.70 | -23.14% | 2.5% |
| PrSh Dow Sh ETF | DXD | $54.46 | $62.93 | 15.68% | 1.1% |
| iSh Asia ex-Japn | EPP | $135.60 | $134.90 | -0.40% | 3.0% |
| Credo Petrlm | CRED | $11.39 | $12.49 | 9.76% | 2.7% |
| Q-Logic | QLGC | $15.95 | $16.48 | 3.43% | 5.7% |
| PrSh NASD Sht ETF | QID | $45.37 | $45.35 | 0.08% | 2.7% |
| PrSh Ultra Health ETF | RXL | $56.38 | $55.94 | -0.67% | 3.0% |
| Sun Hydr’lics | SNHY | $24.85 | $37.62 | 51.59% | 2.7% |
| Trina Solar | TSL | $35.67 | $28.45 | -20.14% | 3.2% |
Not much else to add at the moment, so …
Cheers,
Allocator
a.k.a. George Parkanyi
gparkanyi@hotmail.com
Copyright 2008 – all rights reserved
