Execution Date: November 03 2026 - Market Close
Email: andrei@signal-sigma.com
Follow & DM on X: @signal_sigma
Today's rebalance is primarily concerned with adjusting position sizes given some extreme divergences that were noted in our commentary. Defensive sectors like Healthcare, Staples, Energy are extremely overbought and prone to a pullback. We will reduce / trim exposure there.
Meanwhile, Momentum correlated Tech is near capitulation limits and the risk reward is somewhat favorable. We are not in the business of catching falling knives here so the additions will be limited at the moment. We need more proof that the Growth factor is catching a rotation before we add more agressivley.
Enterprise has increased exposure to Stocks at today's rebalancing interval and almost completely cut Commodities. This is an incrementally bullish signal, but does not constitute a "Green Flag". As a result, this rebalancing session is more about minor adjustments rather than a sharp turn, but the risk / reward in our portfolio will be increased.
We are also modestly raising cash, as the market rout may deepen.
This is how our final asset class allocation will look like after today’s close:
Stocks: 59% --> 52%
Bonds: 16% --> 21%
Alternatives: 3% (unchanged)
Commodities: 5% --> 2%
Cash: 17% --> 22%
This is the basket of trades which will be executed at today's close:
Sell to Close (sold the entire prior position)
SELL PSX (Close Position)
SELL FIX (Close Position)
Trim (reduced partial position)
SELL DBC (Trim ~3.09% from Position)
SELL LLY (Trim ~2.65% from Position)
SELL MPC (Trim ~1.58% from Position)
Add (increased existing position)
BUY AAOI (Add ~0.95% to Position)
BUY AEHR (Add ~0.61% to Position)
Initiate (new position)
BUY PWR (Initiate New Position — Add ~1.61% to Portfolio)
BUY IEI (Initiate New Position — Add ~4.98% to Portfolio)
BUY FTNT (Initiate New Position — Add ~1.92% to Portfolio)
As always,
Happy investing,