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,

I got 3 buy orders on GDX today after the close.

I missed a good chance earlier when the market was tanking but I’ll take what I can get.

Here are the trades…

 

 

There was also a buy in SLV, the silver ETF.

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

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.