February 28, 2017… And the Buy Goes On.

Market close February 28, 2017…

SPY ended the month at $236.55 per share, while its 200-day simple Moving Average closed the month at $218.01 per share. That means SPY is still on a Buy Signal.

On December 31, 2016 your 4905 shares of SPY were worth $1,096,415. These shares are now worth $ 1,160,425. So for the two months of 1917 your total profit on SPY, including dividends, is $64,010 or
$32,000 per month. Who said investing in Index ETFs is boring?

The question is where to from here? The model says you should stay invested until a sell is generated at a month end. The model has kept you invested for the past 229 days and given you 17.25% on your investment ( including dividends ).

Think you can do better ? or….afraid to lose what you have?

The following is not advice. My thinking for myself ( very dangerous ) is that the market is due for a pause within the context of the existing buy signal. I have sold everything and I am redeploying my money in 100 shares of each of the following ETFs…SPY, VTI, ITA, KBE, XLF ( 200 shares ), QQQ. At the same time I have written 1 put contract ( 100 shares per contract ), except VTI.for assignment to me at a price which approximates the 50 day moving average price of each ETF purchased. This will allow me to stay invested, receive a premium for each put contract and maybe get assigned the shares at a price that will allow me to average down the price of my long positions.

Richard Maurice Gore

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