Rebalancing · Candidate Set

Candidate Actions

Portfolio Rebalance — Oct 5, 2026

Data as of

Oct 5, 2026 · 4:00 PM ET

DEMO DATAResearch only

Decision Brief

What changed

Nine candidate actions were generated from the mandate-eligible universe; four entered the package, two were deferred and three were screened out.

Why it matters

Knowing what was rejected, and why, is what separates a research package from an opaque optimizer output.

Watch / decide

The two deferred candidates would each improve the after-tax outcome but require a separate decision on the digital-asset sleeve and the turnover ceiling.

Research confidence 91%

Candidates generated

From the mandate-eligible universe

In package

$8.4M

Deferred

Require a separate decision

Screened out

Mandate or signal grounds

Every candidate examined, with its disposition and reason — select a row to inspect

Candidate Matrix

Action	Notional	Drift effect	Risk effect	Tax	Liquidity	Regime fit	Conf.	Disposition
SELLXLKTechnology Select Sector	$4.2M	-2.6	-8	$280K	T+1	Defensive	93%	In package
BUYXLUUtilities Select Sector	$1.8M	-0.6	-3	—	T+1	Defensive	88%	In package
BUYXLEEnergy Select Sector	$1.4M	-0.4	-1	—	T+1	Neutral	84%	In package
CashCASHCash reserve	$1.0M	-0.2	-1	—	Immediate	Defensive	90%	In package
REDUCEDIGITALDigital asset sleeve (aggregate)	$2.0M	-0.5	-1	$140K	T+2	Defensive	79%	Deferred
SELLXLYConsumer Discretionary	$1.2M	-0.3	-2	-$110K	T+1	Cyclical	72%	Deferred
BUYXLPConsumer Staples	$1.2M	-0.3	-2	—	T+1	Defensive	64%	Screened out
BUYIEF7-10 Year Treasuries	$2.0M	-0.4	-4	—	T+1	Defensive	61%	Screened out
BUYSPX PUTIndex put overlay	$600K	—	-6	—	T+1	Defensive	44%	Screened out

Selection logic of the chosen package

Why These Four

XLK

$4.2M

Clears the concentration breach and removes the weakest rotation signal.

XLU

$1.8M

Strongest relative strength and best regime fit of the defensive candidates.

XLE

$1.4M

Least correlated large sector as cross-asset correlation rises.

CASH

$1.0M

Reserve optionality while liquidity conditions tighten.

The package was chosen from three frontier points on drift, after-tax cost and turnover. The two deferred candidates would each improve the after-tax outcome but sit outside the constraints of this decision.

Selected candidates combined

Package Effect

Notional$8.4M

Turnover3.4% of AUM

Drift6.4 → 2.1

Risk score72 → 58

Breaches2 → 0

Estimated tax$420K

Research only. No order, allocation instruction or execution path is generated by this system; every leg requires human approval.