Off We Go….Again.

June 3 2013

VTI is my substitute for SPY.

Because….. it offers greater diversification,  holding  3,300 US equities versus 500 for SPY at a cost of only 0.06%.  VTI has returned 8.73% year to date versus 7.91% for SPY.

VTI closed out May on Friday 9.68% above its 200 day moving average which means its a keeper for those holding until the price of VTI crosses its 200 day moving average to the downside. ..at month end.

As you know from my previous post, I exited this market last week because I trade within the parameters of the buy signal.  I didn’t like the vibes, so like the nervous Nelly I am, I took my money off the table.

Accordingly, I am now back in the water purchasing $125,000 of ETFs on Friday.  Of the dollars invested, 60% VTI and 10% each RPG, QQEW, VB and VO. which tweaks the portfolio toward small and mid caps.  Unfortunately, I invested at 2:15 pm,  just before the downturn,  but fortunately by holding back till today for  the complete purchase ( another $125,000 ) I saved $ 2,100.  And, I may wait as much as a few days to complete my May 31 scheduled purchase.

I don’t have the specific risk of individual stocks but I do have market risk which, of the two,  I will gladly accept.  That means I had  better read the NY Times everyday and attempt to anticipate all the twists and turns…..within the context  of the existing VTI ( or SPY ) buy signal which ultimately rules.

In my first post I said I was trying to determine whether an ordinary person can make a living from the stock market without professional help.

Last June 11, I came to the conclusion that SPY was the only way to invest.  If someone had a retirement resource of $1,000,000 and invested it in SPY on that date and had done nothing since, except play golf, they would be ahead as of today $215,000 – with one week to go.  That’s a living.  Right ?!

 

Richard Maurice Gore

 

 

 

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