Friday, May 22, 2009

Trading rules in effect now

This post is relevant only to me, trying to keep track of my compliance with the currently in effect trading model:

Current Trading Model:  Unstable VIX Pattern (SINCE AUGUST 2007)
FUTURE Duration: Unknown 
Long Term:  Long Term Secular Bear Market   
Cash flow available for reinvestment into common stocks: Currently $0
Cash Raised for Later Buy of BWX: $2700 (held in mental escrow)
Cash Raised from Sells of Common Stock Available for new stock purchases: $3,000 (mental                escrow) 
Cash Currently Available from short term bond sales: New modified trading restriction in                      force*
Restrictions on Investing Cash Flow: None, as long as S & P 500 stays above 815.
Restrictions on non-stock investments: None other than a prohibition on buying any U.S                          treasuries other than the TIP.

*VIX must find stability in the 20 to 30 range and be below its 200 day moving average before cash raised by recent short term bond sales can be re-deployed into purchasing common stocks.  This is a modification to the prior modification. Modification of Trading Rule in Unstable Vix Pattern: Dynamic Asset Allocation/

VIX up 1.28 today to 32.63.

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