Posted 22 March 2007 - 09:55 AM
Market is in a new uptrend. Just got confirmation of my buy orders for SPY(bought at $143.12) and QQQQ(bought at $44.18). I purchased 1/2 of the position I want on both SPY and QQQQ. Will purchase the other 1/2 after the next follow through day OR when the stocks in the IBD 100 start to break out of bases. Whichever comes first. Will exit position on 4 or 5 distribution days within any 4 week period OR if the low of Day 1 of the rally is undercut.
The trading account is 20% our total portfolio. In a downtrend it is 50-50 stock-bonds index funds. That includes the 20% trading account in SHY(I-shares 1-3 year treasury, In an uptrend move 20% (trading account) to SPY & QQQQ. First 10% moved this morning, making our portfolio 60-40 stock-bond at this time. When the conditions as stated above are right will buy the other 10% SPY & QQQQ making account 70-30 stock-bond. Thus the accounts move from 50-50 stock-bonds in a downtrend, first to 60-40 stock-bonds. Then to 70-30 stock-bonds in an uptrend. That is the idea. The accounts are my rollover IRA, my wife's rollover IRA, and a taxable account. All the trading account is in my rollover IRA, so no tax considerations involved. At least that is the idea. Has worked pretty well for 4 years. Of course that says nothing about the future.
And of course this is no way a recombindation for anyone to do anythinfg.