Today in the market, Wednesday, March 04, 2009: Stocks broke a five-day losing streak Wednesday as hope spread that China and the U.S. are taking convincing action to restart their economies.
Prices for key commodities such as oil and metals also soared, lifting shares of industrial companies like Alcoa Inc. and Caterpillar Inc.
Speculation that China will unveil more government spending this week on major construction projects drove up worldwide prices for raw materials and the companies that produce them.
In Washington, the Obama administration announced details of a plan that could help struggling U.S. homeowners by lowering the cost of their monthly mortgage payments.
The rally was broad, lifting shares in every industry except for financial services. Major indicators surged more than 3 percent during the day before ending with gains of more than 2 percent. (headlines & market commentary by Reuters)
ETF/CEF High Volatility:
- CAF – Morgan Stanley A Share Fund
- EWT – Taiwan iShares
- FXA – Currency Shares Australian Dollar Trust
- FXI – iShares FTSE/Xinhua China 25
- GXC – SPDR S&P China ETF
- IGW – Semiconductor iShares S&P/GSTI Index Fund
- MTK – SPDR Morgan Stanley Technology Index ETF
- PGJ – PowerShares Golden Dragon Halter USX China Portfolio
- SMH – Semiconductor Holders
- TDF – Templeton Dragon Fund
ETF/CEF Discussion: Finally an up day after a long dry spell. With that RSI has stepped up and picked an interesting bunch, liberally spiced with China/Asian and semiconductor funds. Study the chart above and you will conclude these funds have quite a great fall, so use great care. I point this out since this could be a pause in this continued secular bear market and these picks can continue their dive. I warn you of this very possible outcome, so be careful.
Catch you tomorrow.
