Low Maintenance Portfolio Update Dec 2012

No big change in view. No big deal, I think.

For the new month, I have everything on buy side.

The 5 IVY portfolio components are 

• SP 500 (Risk ON) 
• MSCI EAFE (The Most Famous International Index) (Risk ON)
• U.S. 10-Year Government Bonds (Risk ON) / USD (Risk ON)
• NAREIT (U.S. Real Estate Index) (Risk ON)
• SP GSCI (Goldman Sachs Commodity Index) (Risk ON)/ GLD (Risk ON)
• US Dollars (Risk off)

Since I stopped out on USD in September, I put 40% in Gold. Commodity is green this month. It is volatile, and the spread from MA is too small. I decide to leave my money in Gold. Similar case in international index. Why bother.  I also have 20% REIT and 20% Bond since beginning of the year. So far LMP return is 10.02% which is very close to a typical 40% Bond 60% equity allocation but with much lower volatility. 100% equity still wins with a shining 14% YTD return. Volatility? Let's skip that part.

What's different this month is I am holding 20% of SPY (It's the ETF for SP 500. It is 1/10 of SPX plus dividends) at 136 for 2 weeks now (refer to my 3-push pattern posts). This month, SPX actually dip below the MA then came back to form a hammer shape. To add at the signal line is not a violation to the LMP methodology.
I think it may face some short-term pressure. I am managing the risk by using some simple derivative strategy. I hope it could go up a little bit more, let's say 143ish.

 My plan is holding equity for Santa, then close out before Christmas.