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STOCKS STUMBLE AS INVESTORS FEAR WORSENING ECONOMY – INTRODUCING CATS & DOGS January 30, 2009

Posted by Marlowe Cassetti in BIL, CMK, DGL, NYF, TIP.
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Today in the market, Friday, January 30, 2009: Stocks finish lower as investors fear worsening economy, worry ‘bad bank’ idea has hit snag.

Wall Street ended its worst January ever by stumbling again over the banking system and the economy.

The major indexes all fell sharply for the second straight day, leaving the Dow Jones industrial average and Standard & Poor’s 500 index with record percentage drops for January — 8.84 percent and 8.57 percent, respectively. Some market watchers believe that’s a bad omen for the rest of the year, as the market usually ends a year down after having fallen in January. (headline & commentary courtesy of Yahoo Finance)

ETF/CEF Low Volatility:

  • BIL – SPDR Lehman 1-3 T-Bill
  • TIP – iShares Lehman TIPS Bond Fund

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ETF/CEF Cats & Dogs:

  • CMK – MFS Intermarket Income Trust
  • DGL – PowerShares DB Multi-Sector Commodity Trust Gold Fund
  • NYF – iShares S&P New York Municipal Bond Fund

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ETF/CEF Discussion: The continuation of the decline has put RSI bask in the conservative camp. I tweaked the knobs a bit and came up with a category I call “Cats and Dogs”. They represent funds that are entering an up-trend, without regard to volatility, market cap and volume. Therefore these can be very thinly traded issues, so treat them like nitro. Handle with care! I will report on the C&D category from time to time, when they are of interest.

Have a good weekend

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