Position Cost Averaging

Hi PCA Fans,

I am sure there is no surprise that we are getting more buying as the markets continue to fall.

It makes me wonder if we should skip the buying and wait for an even lower markets with bigger better bargains.

It is not a good sign that I contemplate disregarding the systems advice although with the Big 3 on the hill looking for a handout and big insurance companies buying up very small banks to get in on the bailout I am not sure we are anywhere near a bottom.

The sentiment is just too negative and I am not sure what it will take to turn it all around.

I still think, that even in the face of all of this doom, the Newberry Doctrine would be a great place to start.

We need to see investor, consumer, entrepreneurial and loan officer confidence return before we have seen the bottom.

I am planning on a whole mess of new broadcasts to look hard at the market from all angles and see what we should be doing now.

I will be updating the model portfolio after the close today (Friday November 21st) and loading up on the new buy orders just in case things find a short-term bottom here.

I will also be looking at how the cash has been deployed so far and determining the buying to go forward.

This is either the greatest buying opportunity of your life, or the beginning of the end of capitalism as we have known it. I wish I knew which.

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.