January 16 / Trade Alert For The Sigma Portfolio (Live)

Execution Date: January 16, 2025 - Market Close

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Our analysis this week dictates that excess risk-taking is not optimal at this juncture. For an investor that is not allocated to risk assets at all, buying makes sense, of course. But in our case, we own about 75% stocks versus a target of 60% - so this translates to an overweight positioning. We need to use the post-CPI “relief rally” to move closer to our target this week.

Furthermore, it appears that Millennium Alpha is favoring a well-diversified approach. Given that several well diversified factors are outperforming — Mid-Caps (MDY), Equally Weighted S&P500 (RSP) for example — we agree with this positioning. As such, we’ll be reducing both general exposure by raising cash and rebalance to a less concentrated sectors / factors exposure.

Here are the orders for today’s close:

• SELL 100% LLY (Close Position)

• SELL 100% MSI (Close Position)

• SELL 100% FICO (Close Position)

• SELL 100% UTHR (Close Position)

• SELL 100% CDNS (Close Position)

• SELL 2.5% META (Rebalance to 5% weight)

• BUY 5% HALO (Initiate 5% Position)

• BUY 5% RL (Initiate 5% Position)

• BUY 5% MPLX (Initiate 5% Position)

• BUY 5% DBC (Initiate 5% Position)

The portfolio’s performance can be tracked via the Sigma Portfolio Strategy.