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Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns:

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To: Return to Sender who wrote (1739)	3/30/2013 11:04:59 PM
From: robert b furman	1 Recommendation Read Replies (1) of 8239

Hi RtS, I have sold out of all my short term trading accounts. My 401k is 100% cash. My long term core positions are all retained - they are 100% dividend paying stocks. I have no margin since last October. I am 10% in cash - getting next to nothing for it. I am anxious to buy and get back in ,but the market is high. The stocks I trade in my short term account have been amat,and intc as they both pay a nice dividend. I've been selling puts on both at intermediate dips.The timing for selling the puts has been when I'd like to buy amat/intc at the net price and the subsequent dividend would be a nice yield (4%-5%).That equates to amat below 10 - better yet 9 and intel below 20 - better yet 18. I think the market is topping or rolling over and will give us a intermediate correction that will last 40-45 trading days. Many hope/say we are in an epicenter of wave 3 and the sky is the limit. I hope like heck they are right, as I remain debt free but 100% of my core invested with an accumulated dividend and cash of 10% of my account value. I'd love to see the market blast off and leave my 10% cash not invested. I'd also love to see a sizeable dip happen to sell some more puts, in the hope I get a below market net price purchase and seize the opportunity to lock in 4-5% in debt free companies that have great products and technological moats around them. I've been out of the short term stocks since mid December.They've gone higher since I sold, and they gone lower since I've sold. I'm trying to be patient and wait for a more obvious oversold market. In between being pretty much a scardy cat investor - I've enjoyed the time decay on the puts I've sold. Compounding the dividends plus the money made on the decaying puts which goes into your account when sold - I've been pleasantly surprised on the combined accumulation of cash. Normally this market would make me po'd. Then I read an article about how powerful accumulation of stock was, when it paid a dividend and you reapplied the dividend to a sideways and undervalued stock.It builds quite fast if you just back off and let the price come down to the 2-4 times a year usual low spot. I recently have experimented with selling a put when price hits the lower keltner channel as rsi and stoc hit the lower trading line and that has allowed me re-entry of my expired puts.I've been selling a ladder of puts every 90 days out on short dips and as much as a year on major dips. I like the results - but that is easy to say in this bull run we've had. Time will tell but the worst that will happen is I spend my cash buying stock that yields a good dividend for ever (one hopes at least - nothing is forever). Unless this is one of those historical rally points much like 1999-2000 was, we're due for a correction.imo Hope I'm wrong.LOL Bob

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