The model portfolio gives more buy orders.
Hi PCA Fans,
Well, I missed the bottom…
The market tanked into the abyss on Friday and I missed my chance to get the PCA software updated at those prices… and even after the Biggest One Day Gain in Wall Street History… The market is still low enough for the software to kick out a fresh round of buy orders.
Here they are…
3 straight trades in SPY…wow!
Then we get a double in IWM…
Another Double order on DIA…
Getting a double energy buy in XLE…
We get a single buy order in XLF…
Finally we got a single buy order in QLD.
We may have gotten another round with this but we ran this holding down to just $80.00 in cash!
Because PCA is a "fixed cost" portfolio process, the system will not issue buy orders when the cash reserve is dry.
This is one difference between PCA and Lichello’s AIM.
Since no system is "all knowing" it’s time for a human to look and see if we might deploy more cash into this equity.
I will wait and see.
We got hold orders in many of of positions and we are awaiting further instructions from the software.
It is important to note that I am purposefully managing this portfolio in a less than optimum way.
I am doing this so that people do not think I am cherry picking.. or that I am a "power user" or anything.
I want to show that anyone can do this style of investing and that even if you don’t catch the "tops" or "bottoms" and even if you paid too many commissions by not "bundling" the trades, this system will still be good for you.
In fact, the PCA system is one of the most "forgiving" trading models that I know of. |
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This entry was posted
on Monday, October 13th, 2008 at 4:53 pm and is filed under Leveraged ETFs and PCA, Main Content, PCA & AIM Strategy, Trading Index ETFs, Trading Sector ETFs, Using the PCA Software, users.
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October 14th, 2008 at 6:39 pm
Can you send me your stock picks for pca model portfolio thanks.
Thanks Tom