The market came down again before this month's review. I was able to put some more cash into it, but not enough to cover the amount AIM called for. Unless the market takes off, it will be made up for in subsequent adjustments.

I sold BAC because they said their dividend will go down to $.01 per share every quarter. I replaced it with AA, which goes ex-dividend on 2/5, and they have promised to pay .17 per share. Fundementally, it's probably not the best choice, and there is a chance that they might eventually suspend their dividend as well, but at least this next time they've promised to pay it. I also think that longe-term, it has the best chance of rising the most, percentage-wise, that is if they don't cut their dividend.

One additional thought - on my experiment with the history of the AIM Dogs, I only did an adjustment once a quarter, as I mentioned before. I realized, looking at a chart of the Dow, that in doing it that way probably would have missed out on some extreme volatility around the 2002-2003 years, when the Dow swung wildly between the 11,000s and under 8,000. Most likely, if we would have done monthly adjustments, there would have been some extra trading that would have increased profits, as all extreme volatility does with AIM. I will never again, however, trade whenever there is a signal in a real account, as I did with mine last fall. That is the reason I am now out of cash in the account. Always, at the very least, decide on either a day of the month or a particular date to do adjustments, and only trade on that day. The exception would be if you have to replace a stock.

Cheers until next time!