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.

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