Position Cost Averaging

ATTENTION: I wrote the following piece about 2:30 today… then the market tanked… look for an update at the end of the post.

 

Hi Toolbox Fans,

For over 14 years we have been dealing with, watching and testing Position Cost Averaging. Recently  we started a model portfolio and have been managing it all long as the market has tanked.

This software forces investors to buy low and sell high.  Want proof… look at this.

This is just the latest round of buy orders the software has been giving on our model portfolio of ETFs.

Here we go again… another round of buy orders.

This time the SPY threw off 4 buy orders…in 14 years I have never seen anything like it.

 

 

 

 

Then we got two on the QQQQ.

 

Then we got two on the IWM.

 

Then we got three on the DIA.

 

 

Now we get a buy order on GDX

Two Buy orders on SMH

 

Three buy orders on XLE.

 

 

Finally one on XLF.

 

The GLD and SLV positions do not seem to be getting as much action as we had hoped.

The Position Cost Averaging software has been loading up on shares for the past 10 days and this is just the most recent round.

Just one of our holdings in "out of cash" which means there can be no more buying… but if the market continues lower..we’ll add more cash to the reserve and scoop up the shares.

We’ll keep you posted.

UPDATE:

After I wrote this piece.. the market tanked another 230 points to the downside so I updated my software again and imagine my surprise when I got another round of buy orders… Here they are.

Three more on the SPY…

 

 

Two on the QQQQ

 

Two on the IWM

 

Two on DIA

 

One on GDX

One on SMH

One on XLE

and One on XLF

 

WOW… when markets fall like this it takes guts to step up and buy it.

The beauty of the PCA system is that it forced you to keep some powder dry for times like this so that you can put it to work.

The really amazing thing is how fast it’s falling.

This volatility is the kind of action the PCA software was built for.

To see all the buy orders from this month… click here

This entry was posted on Wednesday, October 15th, 2008 at 5:17 pm and is filed under Main Content, Trading Sector ETFs, users. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.