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Strategies & Market Trends : AIM Questions and Answers

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To: OldAIMGuy who started this subject	4/5/2001 11:16:45 AM
From: OldAIMGuy	of 221

Q........ Hi Tom; I have picked up on a glimpse here and there regarding a possible change in perspective about your using Vealies. Were you performing scenarios with and without using Vealies and finding a positive bias for not using them? Once the Market turns positive are you expecting to allow AIM to Sell as much as it wants or are will you be aggressively performing Vealies? Thanks in advance, Gary ---------------------------------------------- A........ Hi Gary, I plan on letting AIM sell up to the Idiot Wave's cash reserve recommendations on essentially everything in my portfolio and then performing "vealies" as I have in the past. Exceptions are UOPIX (and I'm sure what I'll do there yet) and a couple of conservative issues. My ACG and some others where I'll start pulling "vealies" much sooner, maybe 15%-20% Cash Reserve max. On something like UOPIX, I'll either let the cash reserves go as high as the fund will carry them or possibly try some other strategy for retaining captured gains rather than buy back shares too soon. Currently I've set up the UOPIX account with 75% Buy Resistance and zero Sell Resistance (SAFE). If anything I may raise the Buy Resistance even further if I continue to use AIM as the primary strategy for that derivative fund. For the rest of my account, I think it's more of "How Well" the cash is spent rather than "How Much" that counts. I don't see any reason to hoard more cash in the next bull phase. I do see reasons to keep my Buy Resistance high and substitute my "vealie" for the Sell Resistance when Cash Reserves are satiated. Than's been the direction I've been taking for some time. I may soften up some of the Buy SAFE values later, but it will be dependent on each issue. Yep, I know that's subjective, but that seems to be the way I work best. For instance, VTSS and CHIR don't need or benefit from the same Buy SAFE. Each has its own personality and should be treated individually. This market period we've been through in the last year will be very instructive for everyone who does some back-testing. This was true of the post '87 period on which I based all my original thinking. Back testing the 2000-2001 period will give people a much better understanding of how frequently one should do buying and how much cash reserve is appropriate for certain types of investments. Hope this helps, Tom

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