A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Tom, RE: "one could sell a stock and buy another stock in between aim buy/sell signals."

I'm in the middle of doing a switcheroo right now. I got studying my XOM and D stocks along with my VGENX and a potential ETF, IYE. The first thing I noticed was that VGENX has out performed D and XOM for about the last three years. Hmmmmmm. I bought VGENX as a broad brush way to participate in Energy without having to do a bunch of research into individual stocks. The D and XOM were left-overs from a distant galaxy.

So, I axed XOM and D yesterday. Then I started studying the Zigs and the Zags relative to VGENX for the last three years. Peculiar things theses ZZs. There was a sweet spot in the graphs. Too high a ZZ percent and potential AIM activity nearly died. Then, at the other extreme, it also died off. Right there in the middle seemed to be the best point. Well, then I started looking at ease of trading using ETFs rather than "open ended funds" like VGENX.

The trend lines seem to be pretty long within the energy sector. This means we don't have to worry about "day trading" it even with AIM. In any case, I decided to let the VGENX shares go. I will now combine the total value of the former AIM accounts in VGENX, D and XOM into a single AIM holding using the IYE Exchange Traded Fund. Commissions will be a tiny cost of managing that account. When I get it all set, I'll post the SAFE and MIN settings I've chosen (and why, assuming I can make up a good story!).

Best regards, Tom