This is my last blog for a while since tomorrow we start our vacation. Probably won’t be another blog until after Jan 21st. Sorry about that, but keep checking as my vacation progresses.
The market displayed its usual nervousness but came back strong in the last two hours. That is a good sign. RSI found lots to cheer about, in spite of the choppy market behavior. So here are the picks for today:
ETF/CEF Low Volatility:
- IYH – Healthcare iShares
- XLV – Health Care Select Sector SPDR
What can I say, RSI has been picking health care ETFs and stocks for several days. Are we listening?
ETF/CEF Medium Volatility:
- BCF – BlackRock Real Asset Equity Trust
- EWH – HongKong iShares
- EZA – South Africa iShares
- JXI – iShares S&P Global Utilities Sector Index Fund
Several interesting selections here. BCF, is a new RSI pick. BlackRock is a play on minerals and materials. It is a CEF that pays a nice 6.61% yield and sells at a -11.74% discount. Its top holdings are:
BHP Billiton, PLC 3.3%
Companhia Vale Do Rio Doce (ADS) 3.2%
Rio Tinto, PLC 3.0%
XStrata, PLC 2.8%
Zinifex Ltd. 2.7%
I really like this fund. JXI is another new entry into the pantheon of RSI picks. It tracks a global utility index and goes along with RSI’s general utilities theme.
ETF/CEF High Volatility:
- none
Stocks Low Volatility:
- ACL – Alcon Inc.
- AXS – Axis Capital Holdings Ltd.
Several of these stocks have been picked and discussed by RSI and I will only summarize the business of the new stock picks.
AXIS Capital Holdings Limited, through its subsidiaries, provides various insurance and reinsurance products to insureds and reinsureds.
Stocks Medium Volatility:
- ATW – Atwood Oceanics
- CVX – Chevron Corp.
- KWK – Quicksilver Resources, Inc.
- PRXL – PAREXEL Intl Corp.
- RDS/A – Royal Dutch Shell Plc. A Shares
- SWN – Southwestern Energy Co.
- WMB – Williams Cos., Inc.
Royal Dutch Shell and Chevron are super, major oil companies.
Quicksilver Resources, Inc. engages in the exploitation, exploration, development, production, and sale of natural gas, crude oil, and natural gas liquids (NGLs) in the United States and Canada.
Southwestern Energy Company, through its subsidiaries, engages in the exploration and production of natural gas principally in the Arkoma Basin, east Texas, the Permian Basin, and the onshore Gulf Coast.
This list is heavily populated with energy companies.
Stocks High Volatility:
- CPHD – Cepheid
- SDA – Sadia S.A.
In summary RSI is continuing to favor energy and health stocks.
Catch a Falling Knife
- BFK – BlackRock Municipal Income Trust
- HRP – Hrpt Properties Trust
BlackRock is not only a falling knife but it is having a bounce back. Maybe a dead cat bounce? Looks interesting to me, but don’t get burned. HRP is a perennial bottom dweller. This one may take a long time to recover.
Well, I need to get back to packing our van since we leave first thing in the morning. Stay tuned…
