Position Cost Averaging

Hi PCA Fans,

I finally had a chance to update my PCA again today and what do you know… more buying to be done. The purchasing department has been working overtime and building quite an inventory of low priced shares.

We started this model portfolio in August and so far this will be the 20th buy order into a falling SPY.

There have been 22 buy orders in the recent market turmoil and that is just since august and only in SPY. We still have about 20% of our portfolio value in cash and we have lowed our average cost per share considerably. We can still buy into more weakness and get even more bargain shares.

Here are the orders from today for QQQQ

The QQQQ holding has had 13 buy orders and we still have 21.7% of our holding in cash. So far so good. Cost per share is down about 5 bucks and we are holding 464 more shares than we started with.

Here is the buy orders on IWM

Three trades today in IWM and so far that makes 15 buy orders. We still have 23.8% cash and we are holding 432 more shares than we started with.

Here are the buy orders on DIA

Two buy orders today in DIA and that makes 15 so far. We are holding 432 more shares and our cost per share is down about 9 dollars.

Here are the buy orders on SMH

Two buy orders on SMH as well and now the cost per share is down over 5 bucks from the original purchase. We are also holding 386 more shares after 15 buy orders.

Here are the trades from XLF

Two trades today in XLF, now we are holding 326 more shares with an average cost down over 4 dollars each. The 10 buy orders so far leave us with 16.6% cash left to go.

Even a buy order on GLD, I have been waiting for this one.

Finally one trade in GLD today and its the first one since August, Interesting that we started this holding with a 30% cash reserve to begin with because Gold was so beaten down at the time. Since then it has held up well in the market chaos.

That’s all for today.

Hi PCA Fans,

Today I opened up my PCA software and ran through the model portfolio, Here are the buy orders I got.

IWM Tracking ETF.

order two.

Here are the trades on SMH…

Here is the trade on XLF…

We have seen a barrage of buying in the model portfolio as the market has tanked over the last few weeks. If we ever get a comeback these purchases will be great bargains.

If, as some would have you think, the world is coming to an end, well.. we’ll see.

Hi PCA Fans,

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 QLD position is out of cash. We may consider adding more and getting another big buy order if the market continues lower.

We’ll keep you posted.

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.

Hi PCA Fans,

Today as the market tanked yet again we got a whole new round of buy orders.

So here they are…

Three buys today in the SPY

Two buy orders in QQQQ

Three buy orders in IWM

Three buy orders in DIA…

Two buy orders in GDX…

A single buy order in SMH…

Two buy orders in XLE…

Finally a buy order in XLF…

Also, I would have gotten a buy order in QLD, but the system does not think I have enough cash left to make the transaction.

I thought about buying what I could afford with the remaining cash reserves. But I think I will wait and see what tomorrow brings.

Buy from the scared and sell to the greedy.