Buying SPY, QQQQ, SMH, XLE, and QLD for the Model Portfolio
Monday, September 29th, 2008Ok PCA Fans,
When congress voted down the "bail out bill" we are now getting a fist full of buy orders.
We are getting buy orders on SPY and QQQQ and SMH and XLE and QLD all on the same day.
PCA is allowing us to strategically deploy this cash into a weak market and will also signal us to sell these shares when the markets come back in line.
This is not anything more than pure risk management.
By being most exposed to the market at the bottoms you stand to gain the most when a rebound occurs.
Conversely, by being fully exposed at the top of a market cycle you are assuming the most risk. Now we are going to put a little more capital on the table.
Here are the buy orders we got today…
Here is a good learning opportunity for those new to PCA…We got 3 buy orders on SPY today. The lesson here is that by using the occasional update method I am able to take better advantage of bigger moves in the stock in this case SPY.
Here are the 3 trades…
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Notice how the size of the orders decreases
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And decreases again.
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Of course you would have "bundled" these orders into one transaction at your actual brokerage but for the purposes of running this model portfolio and blog I am including them separately and will account for them that way as well.
As a side note… I have NEVER seen three trades in a row before… and today it happened twice… Read on.
Here are the trades for the QQQQ and once again we are getting a multiple order. only two on the QQQQ so here they are.
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Now we are moving on to the sector ETFs and we are getting one buy order on the SMH
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We are also getting a buy order on XLE
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And finally we are getting another triple buy order… this time on the QQQ.
WOW, I have never seen anything like it.
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Thursday Night we are doing the third seminar with our special guest Jeff Webber on how to build a diversified portfolio and we’ll talk about using PCA and LEAPs for the most conservative use of leverage I have ever seen… DO NOT MISS IT!
