Position Cost Averaging

Hi PCA Fans,

The market pushes higher into territory that we suspect cannot be sustained by historical standards.

The P/E on the S&P is over 140!

Unless we are in some new paradigm we have to see this market roll over soon and we will take some more sell orders here to free up cash for the next leg down.

Here are the sell orders for the model portfolio today.

Sell 12 SPY for 1,282.08

Sell  16 IWM for 978.40

Sell 8 DIA for 785.36

Sector Selling…

Sell 8 GDX for 391.28

Sell  13 XLE for 731.51

I will continue to take any sell orders that we get here and we’ll see what happens in the next few weeks. This market is going to be forced to make up its mind in the next few weeks.

To find out why, see our Sunday Night show at www.MarketToolbox.TV

Hi PCA Fans,

Once again the market pushed higher and once again we are getting more sell orders.

Selling 13 SPY  for  a total of 1,371.63

Selling 21 QQQQ for a total of 880.74

Selling 18 IWM for a total of 1,082.52

Selling 12 DIA for a total of 1,167.48

Selling 16 GDX for a total of 761.60

Selling 13 SMH for a total of 328.25

Selling 10 XLE for a total of 543.80

Selling 5 GLD for a total of 511.40

Selling 40 SLV for a total of 683.20

The Total Portfolio Value of all holdings and cash reserves is now positive by 1.2% and we are holding a lot more shares than we started with. None the less our $5,670 gain is a great relief since the market has actually gone down about 20% on us.

PCA is a wonderful risk management style.

Hi PCA Fans,

I updated the model portfolio recently and got a barrage of selling. As I expect the market to roll over a bit here and possibly for a while, I am updating the portfolio more often these days.

Today I opened it up and ran the quotes to discover another round of selling.

I will take this round of sell orders as well because I will want the cash on hand to buy back in at lower prices.

Here are the orders for the model portfolio.

In the Indices portfolio I am getting sell orders on SPY, 14 shares for 1,456.28

The QQQQ holding is saying hold and I will.

The IWM says sell 17 shares for 1,003.68.

The DIA is selling 10 shares for a total of 959.70

The Sector Portfolio is selling off a bit as well… here are the orders.

GDX is selling 15 shares for a total of 668.40.

SMH is selling 14 shares for a total of 345.66.

XLE is selling 9 shares for 478.08.

The commodities are all holding and we sold the entire QLD position as it was a bad idea to begin with.

Total portfolio picture is this…

We started with a portfolio value of 472,613 and now we have a portfolio value of 471,728 so we are down a mere 885 bucks or 0.2%.

That is not bad at all when you consider the prices of our initial purchases way back in August of 2008. The market had not really fallen apart yet and the collapse provided the buying opportunities to load up the portfolio.

We’ll see what happens going forward and since we have about a 25% cash reserve available we may get a chance to deploy more cash should we get considerable weakness from here.

With 75% of the portfolio invested, we could also get a chance to lock in more gains if the market pushes higher.

The beauty of the PCA strategy is having a plan in place no matter what.

Until next time…

Buy from the scared… sell to the greedy with PCA.

Hi PCA Fans,

I am selling some shares in DIA as I expect the market to go down a bit and the software is saying sell.

We are parting with 59 shares for 5,596.74.

Once again I am getting another small sell order so I’ll take some more off the table.

Selling another 6 shares for 569.16.

Now the DIA holding is 76.5% shares and 23.5% cash.

We are still down on this holding by a couple grand but our average cost per share is just 99.56 compared to the 114.89 when we started.

I will see what happens.

Hi PCA Fans,

The software is screaming SELL and I am going to sell 156 shares of IWM at 58 for 9,048.00.

and of course, I am getting another sell order for 15 more shares so I am adding another 870.00 to the cash side of this holding.

Now this holding is 80.3% shares and 19.7% cash. We have had 18 buy orders and 2 sell orders.

We are showing a 0.2% profit on this holding and have a ton of shares left should the market push higher.

It is even better to have more cash now so that we can buy if prices go down again.