Archive for October, 2015

BUY SIGNAL !

Saturday, October 31st, 2015

OCTOBER 30, 2015 ….Market Close

SPY ended October at $207.93 which is 1.6%….. above it’s 200 day simple moving average of $$204.59.

According to my SPY 200 day Month End  Model, a buy signal has been triggered telling me to go ” ALL IN “. in SPY.

The last Buy Signal for SPY under this model was valid for 921 days ( December 30, 2011 – August 31, 2015 ) and returned a total of 69.02% including dividends and distributions.

There have only been 6 trades since the Buy Signal of February 29, 2000.  All Buys were winners except the Buy Signal triggered on March 28,2002 which became a Sell Signal just one month later, resulting in a loss of 5.82% for the round trip.

If you had followed this model since January 2000,  your total return would have been 280.02% versus 103.29% ( Buy and Hold ).

If you had ignored the month end rule  and bought and sold SPY every day SPY  crossed its 200 day moving average, you would have been involved in 61 trades and 46 of them would have been losers. !!

I subscribe to a back testing service,” ETF Replay” , and I am relying on the accuracy of  their data for my trading.

Please don’t rely on my advice because I have no licence to give it.  I am merely showing you what I do as an alternative to the Buy and Hold advice given by  ” heavyweights ”  such as  Warren Buffet and John Bogle of Vanguard.  I am using the same index, the S&P 500, but adding the concept of mechanical trend following.

As stated in my very first Post…all this is intended to do is share with those who are new to IRAs and ETFs,  my  alternative to my  putting myself in the hands of someone who could expose my savings to the higher risk of individual stocks without indicating the difference in magnitude between the “specific risk”  of individual stocks and SPY’s  much lower “market risk”.

 

Richard Maurice Gore

 

 

Citizen Alert ! Follow the Money !

Friday, October 9th, 2015

October 9, 2015

You may be interested to know PEOPLE magazine has just published a contact list for all 535 members of the US Congress.

PEOPLE published the list as  ” a Call to Action ” for people to make their voices heard about the frequency of mass shootings in the USA.

Congressional contact data has been  in the desk drawer of every Lobbyist on K Street,  Washington DC. for some time.

Lobbyists  are using the list to contact your Congressman and infiltrate his staff  to  influence him to vote on  many issues  for what is very  probably not  in your best interest.

Since the year 2000 the number of  lobbyists in Washington has doubled and the starting salary runs about $300,000.  You can thank ” trickle down ”  ( Bush Tax Cuts for the wealthiest Americans ) as ammunition for the lobbyists to ” work with ” your Congressman.

An Example of Lobbyist influence…. 90% of Americans are for a background check on gun purchasers  and Congress does nothing. What is going on here ?  Total non-responsiveness !

The truth is congressional staffs have been thoroughly infiltrated and corrupted by lobbyists with gifts, trips, freebees and promises of future employment. This has made Congress non-responsive and incapable of courageous positive action.  Campaign money flowing from lobbyists and their wealthy overseers has made it more  and more possible for congressmen to ignore answering  to their constituents for their actions or lack thereof. How many congressmen fail  to get re-elected ?

Our founding fathers didn’t want congress to be a career…never mind a business.! Do you think Congress would vote for term limits ? Not a chance.

Did you know that more than half of our 535 members of Congress are millionaires ?  Wouldn’t it be interesting to know whether they became millionaires after becoming a member of Congress ?

In my opinion The ultimate election issue of 2016 is….

Can we free Congress from the clutches of the lobbyists and the 1% wealthiest Americans who have doubled down on Congress with ” trickle down “……..because this issue plays into every issue on the election agenda.

This might be a good test to measure Lobbyist infiltration of Congress….

How many of the 535 members of Congress accept campaign money or other donations from the National Rifle Association.? Who are they.?  

The only way to end this subversion is to offset the focused  gifts and threats of the lobbyists with the threat of focused grass roots action aimed at the  election defeat for individual  Congressmen who ” sell out ” to the lobbyists and their ultra rich overseers..

It will require a grass roots MOVEMENT to do this ..as suggested by Bernie Sanders because Congress refuses to cure itself..

Bernie or no Bernie Sanders Congressional REFORM must take place ASAP.  Attitudes are hardening and our economy is evolving into what could become a struggle exponentially beyond ” Occupy Wall Street .”…especially with the wealthiest 1% saying the bottom 99% is just jealous of their success.

Richard Maurice Gore