Position Cost Averaging

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.

Hi PCA Fans,

I updated the model portfolio after the close today and got a buy order on SLV. Here it is…

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.

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.