February 20 / Trade Alert For The Sigma Portfolio (Live)
Execution Date: February 20 2026 - Market Close
Admin Note: We will be on winter break next week February 23 - 27; only exceptional market developments will get coverage in our Blog.
Email: andrei@signal-sigma.com
Follow & DM on X: @signal_sigma
Today’s rebalancing session occurs after a higher than expected PCE Price Index was reported (+0.4% vs +0.3% expected). We would argue that the Fed’s hawkish tilt recently has already allowed for the correct pricing of yields, with the next rate cut expected in the June - August window.
The main theme from a capital rotation point of view has been the value versus growth trade, which is reaching extremes. As such, our rebalancing process will focus on reducing the “safer” assets in our stock portfolio (like JNJ, GD and even NVDA), while picking up beaten down stocks in the software and high growth areas of the market.
From an asset class allocation perspective, we will add Bitcoin to our “Alternative Assets” basket (5%) and increase our equity risk exposure, while also increasing allocation to treasuries. Our final Asset Class allocation will look like this after today’s close:
Stocks: 60% —> 62%
Bonds: 15% —> 23%
Alternatives: 5% —> 10%
Commodities: 5% (unchanged)
Cash: 15% —> 0%
There’s a lot of trading to be done, so we’ll split the orders by their theme:
Adding Bitcoin to Alternative Assets:
BUY 5% IBIT (Ishares Bitcoin Trust)
Adding Treasury Exposure:
BUY 7.59% TLT (iShares 20+ Year Treasury Bond ETF)
Selling (stopping or taking profits) Underperforming / Value / Lower Volatility Assets:
SELL JNJ (Reduce 5.18% from Position - Close)
SELL NVDA (Reduce 5.17% from Position - Close)
SELL GOOG (Reduce 4.17% from Position - Close)
SELL LRCX (Reduce 3.78% from Position - Close)
SELL GD (Reduce 3.59% from Position - Close)
SELL HWM (Reduce 3.27% from Position - Close)
SELL MNST (Reduce 3.09% from Position - Close)
SELL INSM (Reduce 1.98% from Position - Close)
SELL U (Reduce 1.65% from Position - Close)
SELL OCUL (Reduce 1.58% from Position - Close)
SELL MU (Reduce 1.21% from Position)
Adding High Risk / High Reward positions, recently sold off:
BUY STX (Add 4.74% to Position)
BUY ENVX (Add 3.00% to Position)
BUY APP (Add 2.98% to Position)
BUY PEGA (Add 2.98% to Position)
BUY ZM (Add 2.96% to Position)
BUY PLTR (Add 2.93% to Position)
BUY CDNS (Add 2.79% to Position)
BUY SNPS (Add 2.88% to Position)
Rounding out the rebalancing process by adding to some existing positions:
Simultaneously, risk / reward should increase in our portfolio going forward. The full transactions table for today is quite large and can be seen in the screenshot below, as well as in the Sigma Portfolio Strategy and Portfolio instrument.