S&P 500:         1518 (108.0%)

Portfolio: $567,615 (113.5%)

XBI      2010 shares    $191,010

ITB      8160 shares    $184,497

XLE     2460 shares    $119,363

Cash                            $744

Notes: The portfolio is up 13.5 percent since May 1, 2012 compared with 8% for the S&P500.  Note the portfolio lost an additional 3% relative to the market during July, when it was out of the market for a couple days while changing positions.

Today the portfolio sold its stake in DGS, the Wisdom Tree Emerging Small Cap Dividends ETF, and bought 2460 shares of XLE, the S&P Energy Select ETF for an average of $77.88 per share.  The portfolio now holds $744 in cash.

S&P 500:         1513  (107.7%)

Portfolio: $573,092 (114.6%)

XBI      2010 shares    $193,060

ITB      8160 shares    $188,740

DGS     3790 shares    $191,281

Cash                            $10

Notes: The portfolio is up 14.6% since May 1 2012, compared with 7.7% for the S&P500.  Will we get eight more weeks of strong net asset value growth if the groundhog sees his shadow?

S&P 500:         1426 (101.5%)

Portfolio: $537,077 (107.4%)

XBI      2010 shares    $176,638

ITB      8160 shares    $172,747

DGS     3790 shares    $187,680

Cash                            $10

Notes: The portfolio is up 7.4 percent since May 1, compared with 1.5% for the S&P500.  Note the portfolio lost an additional 3% relative to the market during July, when it was out of the market for a couple days while changing positions.

S&P 500:         1409 (100.3%)

Portfolio: $526,390 (105.3%)

XBI      2010 shares    $180,156

ITB      8160 shares    $168,748

DGS     3790 shares    $177,485

Cash                            $10

Notes: The portfolio is up 5.3 percent since May 1, compared with 0.3% for the S&P500.

S&P 500: 1380 (98.2%)

Portfolio: $510,045 (102.0%)

XBI      2010 shares    $169,745

ITB     8160 shares    $165,648

DGS     3790 shares    $174,543

Cash                            $10

Notes:  U.S. markets have dropped significantly in the few days since the election, on fears of the impending “fiscal cliff” and an administration that campaigned on hostility toward business and business owners.  The portfolio is outperforming the market by 3.8% over the last six months, with a two percent portfolio gain contrasted with approximately a two percent market decline.

The portfolio sold IYZ, as telecom seems to be slowing and a significant product upgrade cycle has recently completed, and bought DGS, an emerging markets small-cap ETF based on a recent turn in emerging markets.

S&P 500: 1412 (100.5%)

Portfolio: $512,594 (102.5%)

XBI      1800 shares    $150,876

ITB    9140 shares    $187,593

IYZ      7070 shares    $172,649

Cash                            $1,475

Notes: The portfolio is outperforming the market by two percent over the last six months, losing gains as the major indices fall in October.

S&P 500: 1440 (102.5%)

Portfolio: $526,980 (105.4%)

XBI      1800 shares    $168,138

ITB    9140 shares    $176,859

IYZ      7070 shares    $180,496

Cash                            $1,475

Notes: The portfolio is outperforming the market by three percent over the last five months, with over double the market’s return.

S&P 500: 1403 (99.89%)

Portfolio: $503,700 (100.76%)

XBI      1800 shares    $162,386

ITB    9140 shares    $167,536

IYZ      7070 shares    $172,426

Cash                            $1,475

Notes: The portfolio is slightly outperforming the market by just under one percent over the last four months.

S&P 500: 1375 (97.8%)

Portfolio: $502,800 (100.6%)

XBI      1800 shares    $168,371

XLP    4700 shares    $167,223

IYZ      7070 shares    $165932

Cash                            $1250

Notes: Although the portfolio is still outperforming the market by a few percent, it is significantly hampered by being in cash the last day and a half during rebalancing the portfolio.  In that time, the S&P 500 went up almost 3%, erasing much of the advantage the portfolio gained over the index.  Had the portfolio not been sold, it  would have been up an additional 3%, outperforming the index by 5.8% rather than the 2.8% advantage the portfolio currently holds.
Although this was not the intent, this illustrates the hazard in being out of the market for a day or so while previous sales clear and cash becomes available, and illustrates the value of brokers who allow purchases to be made before proceeds from previous sales have settled, or trading in ETFs rather than traditional mutual funds.