Safe but Anxious !

September 3, 2015

I keep telling myself I have been through this before, and that I should be feeling very good about having taken so much money off the table after August 17, and before the SELL signal of August 31.

But, I don’t feel very good.  Although I am disinclined to do any day trading, I feel as though I should be doing more strategically to deal with future moves the market makes. I don’t know whether this means only that I  hate  being passive,  or possibly, that I’m beginning to exhibit the symptoms of a degenerate gambler.  I’ll assume the former applies to me, ( until the intervention ).

To rid myself of market anxiety , I’ve decided to do something proactive and positive to while away the time until the next month end BUY signal arrives, ( hopefully October 31 ).  

I would feel very anxious if a BUY signal is received September 30. With October, Halloween  and the prospect of a 100% whipsaw staring me in the face,  I’ve already decided I would absolutely mistrust a September 30 BUY signal.  How’s that for taking the emotion out of investing !

To alleviate my feeling of dread, (even though I have very little at risk ), I’ve decided to invest dribs and drabs every time the prices of a particular equity or ETF  hits a new low, 5% lower than it’s last low. This means if an equity declines a full 50%,  I’d have made 10 drib /drab investments to commemorate every successive  5% downward move in that equity or ETF . With a 25% retracement, I’d have made 5 purchases , and with a 15% decline, just three purchases in an equity or ETF . All this presumably would lower my average cost as the market moves lower with roughly 85% of my money waiting for an ” All In”  deployment at the BUY signal.

I have a strong sense that this activity will, at least , make me feel I am doing something constructive while I wait..

I will add between 10 and 25  shares every time the market price of each of the following ETFs declines a further  5%.

SPY, XBI, QQQ, XHS, VDE, VGK, HEDJ, DXJ.

I will add 25 shares every time the market price of each of the following equities declines a further  8%.

AAPL, CVS, HD, ALK, MHK, WBA, ORLY, HCA, FB, GILD, TWX, SWHC.  I know its said to be foolish to average down a losing equity position.  But, these are equities which exhibit all the characteristics of marriage type equities.  I will still be following specific events and can pull the plug on any  if I believe doing so is warranted.

Now for my disclaimer.  I don’t have a licence to give investment advice to anyone(  including myself  ! ) ,  so please don’t consider the above in any way reliable for investment action by you.  The purpose of the this site if for me to find out where and why you think I’m wrong.  So, please feel free to  chime in.

Richard Maurice Gore

 

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