June 30 – The VTI Buy Signal Of December 31, 2011 Lives On.
June 28, 2013
VTI has closed the month at $ 82.67. This is 6.98 % above its 200 day simple moving average, $76.99
Those who bought VTI at the December 30, 2011 close should stay 100% invested in VTI.
The next possible sell day is July 31, 2013.
Those who bought at the closing price December 30, 2011 are ahead approximately 30% and are in sync with the trend.
I am not part of this ” in sync ” crowd because I was still a ” stock picker ” on December 30, 2011. And, in fact, I was out of the market because things looked so bad, both here and in Europe. So, I also let negative macro fundamentals divert me from the action I should have taken…..Buy VTI….All In !
Now, that I am a full fledged trend follower, I am just looking to get in sync with the trend. Since I’m not in sync, I’ve decided to ” dollar cost average ” my way into the trend, diversifying by time. This means buying a fixed dollar amount of VTI at regular intervals (every other month end ) in the hope that the VTI 200 day moving average will approach or be above my average purchase price by the time a sell signal is generated. The longer this market can grind higher, the better chance of that happy convergence happening.
I picture the trend as a shark. I’m a pilot fish. If I swim next to the shark ( trend ), I’ll eat and be safe. If I swim against the trend ( shark ) , I’ll be seen and be eaten.
That’s my situation…..trying to get closer to the side of the shark without being noticed and eaten. . .
Onward to July 31 !
Richard Maurice Gore…..ex stock picker and ex analyst of macro fundamental trends.