The Model Portfolio… Not Much Happening
Hi PCA Fans,
We have a bunch of holdings set up and we are trying to run a nice model portfolio for you, but with all the action up and down we are not getting enough action in either direction to allow us to get some trading activity in our holdings.
We need bigger market cycles in order for PCA to generate some good trades.
These little 200 points up..200 points down are not going to get it.
We need to see some longer runs in either direction in order to move the bar and get some trades.
Now we have a Hurricane headed for the Gulf of Mexico and an election on the horizon.
Maybe after we get through with all of the the market can find a direction and stick with it long enough to give us a buy or a sell.
We’ll keep you posted.
August 27th, 2008 at 4:49 pm
The market is acting a little schizo lately. Hopefully after the holiday, we will see some better action.
What would happen to the system if you adjusted the buy/sell indicators to match the current trading range percentage?
August 30th, 2008 at 9:14 am
Thanks for the question.
The PCA would start giving trade advice when the targets would get hit, although one would need to be careful that the trade was either a sufficient number of shares, or it might not be worth it.
Better probably to just wait until the market finds a direction.