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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?


To: OldAIMGuy who wrote (7879)7/2/1999 9:37:00 AM
From: JZGalt  Respond to of 18928
 
Tom,

Can you explain to me the ramifications of these two options?

Option #1 - buy safe = 0, sell safe = 20%
and
Option #2 - buy safe = 20%, sell safe = 0%

If I use option #1 on the GALT data I end up with AIM $6k behind B&H, but if I use #2, I end up with AIM 17k behind B&H. Remember 10%, 10% was $11k behind.

On the surface these would all appear to be the same with AIM slicing out 20% profits on swings, but I'd like your insight. Clearly they aren't the same. Can you explain?

I assume it didn't trigger a buy

Actually AIM did quite well selling GALT into the $30's, buying it back in the low $20's and then selling on the way up. It is only in the past 6 weeks or so when it leaped from "undervalued" to "fairly valued" that AIM got left in the dust.

3/09/99 -173 24.625
3/29/99 -180 26.391
3/31/99 -169 28.268
4/07/99 -172 30.501
4/20/99 +209 22.774
5/06/99 +202 21.835
5/14/99 -178 29.674
5/20/99 -175 31.992
6/04/99 -169 34.578
6/16/99 -161 37.478
6/17/99 -164 40.986
6/29/99 -150 44.776

+ = buy, - = sell, buy and sells set for 5% of portfolio.
----
Dave