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.

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.

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.

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

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

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.

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.

Today as the market tanked yet again we got a whole new round of buy orders.

So here they are…

Three buys today in the SPY

Two buy orders in QQQQ

Three buy orders in IWM

Three buy orders in DIA…

Two buy orders in GDX…

A single buy order in SMH…

Two buy orders in XLE…

Finally a buy order in XLF…

Also, I would have gotten a buy order in QLD, but the system does not think I have enough cash left to make the transaction.

I thought about buying what I could afford with the remaining cash reserves. But I think I will wait and see what tomorrow brings.

Buy from the scared and sell to the greedy.

You have all heard the old saying, "Buy when there is blood in the street."

Well here we go. I am getting buy orders in indices, sectors and leveraged ETFs and will trade them like this.

SPY, yes another buy order on the S&P tracking ETF.

The buy order on QQQQ is…

Here is the buy order on GDX…

Here is the buy order on SMH…

Here is the buy order for XLE

and finally here is the order on QLD

Also, we are having a LIVE event this Friday afternoon with Jeff Weber. Be sure to be in on it. Or, be sure to catch the reply online in the help of the software.

Always remember and never forget…

Socialism is the re-distribution of wealth to the working class -Fascism, on the other hand, is the re-distribution of wealth to the corporate backers of the government.

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…

Notice how the size of the orders decreases

And decreases again.

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.

Now we are moving on to the sector ETFs and we are getting one buy order on the SMH

We are also getting a buy order on XLE

And finally we are getting another triple buy order… this time on the QQQ.

WOW, I have never seen anything like it.

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!