Today in the market, Monday August 11, 2008: The market continued to build on Friday’s good gains as the S&P500 gained +0.69% and Nasdaq +1.07%. It could have been better since stocks were much higher at mid-afternoon. Oil prices had been down most of the day and recovered somewhat near the close which sent stocks down. This seems to be the trend….oil down & stocks up. To me, falling crude oil prices seems to indicate a slowing world economy. It’s all very counterintuitive.
ETF/CEF Catch a Falling Knife on the Road to Recovery (FKRR):
- EVV – Eaton Vance Limited Duration Income Fund close above $14.00
- FRA – Blackrock Floating Rate Income Strategies Fund Inc. close above $14.70
- JKH – iShares Morningstar Mid Growth Index Fund close above $91.80
- NCV – Nicholas Applegate Conv&Income Fund close above $11.50
- VOT – Vanguard Mid Cap Growth ETF close above $58.70
- VPU – Vanguard Utilities VIPERs close above $79.00
ETF/CEF Discussion: RSI didn’t have any picks in the traditional sense, kind of strange for a strong showing today. The falling knife arena has some interesting themes. Conservative, high yield income CEFs, mid-cap ETFs and now a utility ETF. They all look quite impressive and I have added several of them to my watch list at the indicated price triggers. While the income funds have high yields, only FRA has a high (2.81%!) expense ratio…too rich for my blood. I like the other income funds at more reasonable expenses. You make that decision for yourself.
I’ve been working outside most of the day pulling dead trees out of the ground and I’m looking forward to a relaxing evening. Catch you tomorrow.
