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Wednesday, December 7, 2016

FMSUP Shuffle

This post is to update watch-list for Utilities Portfolio (FMSUP).

read this FMSUP article (post link) to understand what is going on.

There was one important change to portfolio construction. It was started with 6 positions, but represented 20% of my account, which proved to be too much. At some point in the beginning of the year the whole thing felt like one giant utility position with tech and industrial kicker. Of course it's not normal and immediate remedy required was a reduction of utilities portfolio. Since I couldn't cut position size, I decided to go with 4 stocks instead of 6.

Two positions sold (PPL in Feb and ES in June) more than covered a deficit that darn mr. Simmons left me, so I felt it was fair to put whole ordeal behind and just continue with sensible portfolio management. Although I would prefer to diversify into 6 or (even better) 10 stocks, FMSUP seems to be doing just fine even with smaller number of positions, and leads me to believe that I can safely
Forget Mr Simmons Utility Portfolio
and just do my own thing.

BTW, I beat the pants off him, XLU and Ass-n-Pee index too... ;-)

FMSUP as of 12/7/16 (this will change soon - I'm rotating)

Presently, there are still about 50 companies that satisfy selection criteria, but I noticed that I'm pretty much shuffling thru the same stocks. They just seem to come up no matter how I look at a pool of possible candidates. So in a coming weeks and months, I will use this Shuffle List to (hopefully) streamline rotation process in order to further increase returns.
FinViz Link


I expect that Shuffle list will change in the future, as we are scraping a bottom of barrel here in utilities. Monster rally that started late last year run out of steam during summer months and turned into a nasty, but orderly correction. Most utility stocks are under 200ma and 10-20% off recent highs. Despite the carnage, this is all quite ordinary and historically able to produce a durable bottom somewhere here. For everything else - there are rules...

FMSUP trades and occasional commentary are published on my private Twitter feed 
(just send me a request - its FREE for now):  https://twitter.com/SWID_iBergamot

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