Bruce,
I saw this on facebook and sent a message to Jose. I think you guys have a great group going and are doing some good training. A lot of my own training these days involves these kind of sparring match ups where you are looking at specific ideas and concepts and experimenting with them.
I gave Jose a few comments on his use of Hou xing, as its one I tend to use in this kind of situation too. I said he should also consider playing with trying to draw a reaction by playing with range and distance, height of attacks and looking to switch directions in succession also use of distraction is something hou xing does too. There are a couple of times Jose does pretty good and makes you flinch or switches direction and gets a momentary advantage in terms of position.
Your strategy looks more like what I would call "bear" from my xing yi, relaxed and non-committal waiting for an opportunity. Think most of what you're doign is fine but those couple of times where you flinch a little I think could have been avoided with a little more active footwork and I think Jose would have found it much harder if you'd have followed up on some of your initial strikes.
I remember maybe a year or two ago doing some similar training with my teacher and Graham's tai chi teacher present. I was kind of in Jose's position sparring with a larger and stronger opponent and I was picking at him with opportunistic shots. Afterwards both of the senior teachers said that the practice was good but that it lasted too long and at some point you need to just get in there and mix it up whether you get hit on the way in or not. In fact they said more you practice this the more you find you can deal with those shots as you enter. Their take was look for the advantage and once you have it try to follow it up, maybe something to work on too?
Good stuff guys