A.I.M. Users Bulletin Board

[SFSecurity]

Hi Bowler Bob, Sorry, I guess I got a bit carried away once I started to look at the leveraged gold position. One bit in your reply is not clear to me is where you say:

If I had allotted $20,000 for the position and apportioned it 50/50, only $10,000 would have been assigned to Stocks for the initial purchase. With the Leveraged ETF, only 1/3 of that was actually used ($3,333) for the initial purchase, and another, equal amount, was set aside for future purchases, for a total of $6,666 toward the stock position, the remaining $13,334 was kept in Cash equivalents.

I can't quite make the math work.

Initial Position $3,333
Reserve for additions $6,666
Cash Equivalents $13,334
Total $23,333

But you talked about a $20,000 total. Is it just a typo or am I missing something?

Some of my response to your comment about leveraged ETFs is that I'm still looking for new positions and am finding that some of them are hitting are are close to hitting their 52 week high. In fact one I've looked at just set a new 52 week high. Don't really want to buy in at that price but not finding a lot that is below 50% of the 52 week high. That is why I as asking about how many weeks (months?) to put into a No Down AIM as a starting point to wait to get the next buy signal. Still haven't heard any suggestions.

On the issue of what to buy, when and when will the next market "correction" come, looking at history of various things like the election cycle, NBER historical info that may indicate that market up cycles are getting longer, the "normal" yearly cycle of the market, and the weird years ending in 5 cycle, it seems to me that we can reasonably expect - baring one of those Krakatoa type events where the world goes dark or a panic attack over Ebola, etc. - from now through April the market as a whole is likely to trend up. Probably only some sectors, but it is still not clear enough to me which ones that will be and which ones will actually lag. And then, if they lag, are they a good position to take? It's all a craps shoot IMHO.

Given that I see an up trend, I have set sell points on my old, non-AIM, positions somewhat above, but not all that much, their purchase price. If I succeed with this approach, this will free up cash to start using those funds for AIM positions. Waiting is biting nails time, it seems.

Warmest Regards,

Allen