GOLDMAN 1Q EARNINGS SURPASS WALL STREET ESTIMATES – RSI PICKS A FLOOD OF BOND FUNDS April 13, 2009
Posted by Marlowe Cassetti in agg, BIL, BIV, BLV, BWX, CTF, EPD, FXE, FXF, IEI, SHY, TIP, TLT, UDN.1 comment so far
Today in the market, Monday, April 13, 2009: Thanks to leadership from financial stocks, the stock market reversed an early 1.3% decline to finish with a modest gain.
Weakness was widespread and trading was listless in the early going. Financial stocks had been among the session’s worst performing sectors in the first few minutes of action, falling as much as 2.7% as traders took profits following the strong gains that financials registered late last week. However, buyers provided support by buying the dip in financials, as has been the case in recent weeks. (headline & commentary courtesy of briefing.com)
ETF/CEF Low Volatility:
- AGG – iShares Lehman Aggregate Bond Fund
- BIL – SPDR Lehman 1-3 T-Bill
- BIV – Vanguard Intermediate-Term Bond
- BLV – Vanguard Long-Term Bond
- BWX – SPDR Lehman International Treasury Bond ETF
- CFT – iShares Barclays Credit Bond Fund
- FXF – Currency Shares Swiss Franc Trust
- IEI – iShares Lehman 3-7 Year Treasury Bond
- SHY – 1-3 Year Treasury Bond Fund (Leh) iShares
- TIP – iShares Lehman TIPS Bond Fund
ETF/CEF Medium Volatility:
- FXE – Currency Shares Euro Trust
- TLT – 20+ Year Treasury Bond Fund (Leh) iShares
- UDN – PowerShares DB US Dollar Index Bearish Fund
ETF/CEF High Volatility:
- EPD – Enterprise Products Partn
ETF/CEF Discussion: Please read the note below.
An important announcement about RSI. Due to my wife’s pending surgery and hospital stay this blog will be spotty for the next two weeks. I will have limited, if any time to spend on the production of this blog. I’m unsure as to my blog schedule. Please bear with me and check to see if there are any new postings. Thank you for your patience.
WELLS FARGO EARNINGS SURPRISE SENDS MARKET SURGING – RSI LIKES THE US DOLLAR AND COMMODITIES April 9, 2009
Posted by Marlowe Cassetti in BCF, DBA, GCS, HIO, HTR, MOO, UUP.add a comment
Today in the market, Thursday, April 09, 2009: Stocks surged Thursday to their highest levels in two months after banking giant Wells Fargo & Co. surprised the market with an early profit report that blew past analysts’ expectations thanks to a strong pickup in its lending business.
The Dow Jones industrial average jumped nearly 250 points and major market indexes logged their fifth straight week of gains. Markets are closed for Good Friday.
Investors have been grasping at any sign of improvement in the crippled banking industry, and Wells Fargo’s report Thursday that it expects first-quarter earnings of $3 billion provided an encouraging sign that a deep freeze in borrowing activity may finally be thawing. Wells Fargo said it benefited from its January acquisition of Wachovia and an increase in mortgage applications. (headline & commentary courtesy of Yahoo Finance)
ETF/CEF Medium Volatility:
- UUP – PowerShares DB US Dollar Index Bullish Fund
ETF/CEF High Volatility:
- BCF – BlackRock Real Asset Equity Trust
- DBA – PowerShares DB Multi-Sector Commodity Trust Agriculture Fund
- GCS – Scudder Global Commodities Stock Fund Inc.
- HIO – Western Asset High Income Opportunity Fund Inc.
- HTR – Helios Total Return Fund, Inc.
- MOO – Market Vectors Agribusiness
ETF/CEF Discussion: A great day in the market as investors piled into stocks as the shorts covered their bets. I’m particularly lucky to have exited my SRS position yesterday. Anyway, please peruse the lists of funds as potential buy candidates. FYI – I own MOO.
I’ll catch you tomorrow after the closing bell.
HOUSING DEAL, HOPE FOR INSURERS LIFT STOCKS- RSI HAS A SLUG OF PICKS April 8, 2009
Posted by Marlowe Cassetti in BGR, BIL, BIV, BSV, EAD, EFR, EVG, GVI, HRP, LQD, MUB, SRS, TIP.add a comment
Today in the market, Wednesday, April 08, 2009: Insurance and technology shares led the market higher in a volatile day Wednesday, breaking a two-day slide. But a dim view of the economy from the Federal Reserve and jitters over looming earnings reports kept buyers in check.
The Dow Jones industrials rose 47.55, or 0.6 percent, to 7,837.11.
Stocks got an early lift from a deal combining two major homebuilders and a report saying the government was poised to extend aid to battered life insurance companies, then wavered throughout the day before ending slightly higher.
The Dow had fallen 3 percent over Monday and Tuesday, which analysts saw as a necessary breather following a powerful rally in March that gave the Dow its biggest four-week surge since 1933. (headline & commentary courtesy of AP via Yahoo Finance)
ETF/CEF Low Volatility:
- BIL SPDR Lehman 1-3 T-Bill
- BIV Vanguard Intermediate-Term Bond
- BSV Vanguard Short-Term Bond
- GVI iShares Lehman Intermediate Government/Credit Bond Fund
- MUB iShares S&P National Municipal Bond Fund
- TIP iShares Lehman TIPS Bond Fund
ETF/CEF Medium Volatility:
- EVG Eaton Vance Short Duration Diversified Income Fund
- LQD iShares iBoxx Investment Grade Corporate Bond Fund
ETF/CEF High Volatility:
- BGR BlackRock Energy and Resources Trust
- EAD Evergreen Income Advantage Fund, Inc.
- EFR Eaton Vance Senior Floating Rate Trust
- HRP Hrpt Properties Trust
ETF/CEF Discussion: Since I had a late meeting tonight I have to make this short and sweet and no charts tonight. Today’s picks ahe heavy with bond and income funds. Plus we have energy & resource CEF plus a real estate trust (not an ETF/CEF). So it’s your choice.
FYI, I have been a long term holder of TIP and it just paid a nice interest payment. The bond funds in my portfolio have been a good, steady anchor that have weathered out this financial storm. Also I booked a nice 15%, short term gain with my position in SRS which was from my “falling knife strategy” that I mentioned recently. That system is still under development.
Catch you tomorrow, but it could also be quite late AGAIN.
STOCKS EXTEND LOSSES TO 2ND DAY; DOW TUMBLES 186 – RSI STICKS WITH BOND FUND PICKS April 7, 2009
Posted by Marlowe Cassetti in BLV, BND, MBB, SHY, TLT.add a comment
Today in the market, Tuesday, April 07, 2009: Investors dumped stocks for a second day Tuesday, prolonging a break from a huge four-week rally as the market girds itself for potentially grim earnings reports.
Major market barometers all fell more than 2 percent, including the Dow Jones industrial average, which lost 186 points. Trading volume was low, which can amplify swings in the market.
The selling hit a wide range of industries, from financials to energy, in an otherwise quiet day during a holiday-shortened week. The markets are closed Friday in observance of Good Friday.
Analysts attributed the pullback to profit-taking after a huge advance in March that gave the Dow its best four-week performance in more than 75 years.
Investors are focused on bank earnings that get under way after the long weekend, and several pessimistic forecasts about potential loan losses have jolted the market in recent days. Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. all report next week. (headline & commentary courtesy of AP via Yahoo Finance)
ETF/CEF Low Volatility:
- BLV – Vanguard Long-Term Bond
- BND – Vanguard Total Bond Market
- MBB – iShares Lehman MBS Fixed-Rate Bond Fund
- SHY – 1-3 Year Treasury Bond Fund (Leh) iShares
ETF/CEF Medium Volatility:
- TLT – 20+ Year Treasury Bond Fund (Leh) iShares
ETF/CEF Discussion: Today’s sour market performance has run RSI back into the bond picking mode again. That’s okay with me as it reaffirms my extensive bond holdings which include TLT and SHY. These have proven to be solid total return holdings for me. I would rather be in a roaring bull market making great returns, but at times like these this bond funds are a good bunker strategy.
Catch you tomorrow.
STOCKS FALL AFTER 4-WEEK RALLY; DOW BELOW 8,000 – RSI PICKS A BOND AND A BIOTECH FUND April 6, 2009
Posted by Marlowe Cassetti in BBH, CSJ.add a comment
Today in the market, Monday, April 06, 2009: Wall Street pulled back for the first time in five days Monday as investors worried about balance sheets at banks and the quarterly results that businesses will start releasing this week.
Investors were also disappointed that talks for IBM Corp.’s $7 billion deal to buy Sun Microsystems Inc. have stalled — a sign that the market is still not ready to support big mergers.
Financial shares sold off after a prominent analyst predicted more losses at banks and said the government’s efforts to prop up the ailing industry might not be as effective as hoped. (headline & commentary courtesy of AP via Yahoo Finance)
ETF/CEF Low Volatility:
- CSJ – iShares Lehman 1-3 Year Credit Bond Fund
ETF/CEF Medium Volatility:
- BBH – Biotech Holders
ETF/CEF Discussion: A blah market today and blah picks form RSI. I guess it is marking time until the market breaks in whatever direction it chooses. CSJ is an index ETF that follows the investment grade corporate debt and sovereign credit debt. It pays a current yield of 4.58% which is nice in today’s environment. Both charts look good and might be worth looking at if the market trend moves into positive territory.
I have an adjunct “falling knife” system that I’m starting to trade. Too early to report the results, but if it pans out I will let you know.
Catch you tomorrow.
DOW CLOSES OVER 8,000, LOGS 4TH WEEK OF GAINS – RSI GOES T-BILL April 3, 2009
Posted by Marlowe Cassetti in BIL.add a comment
Today in the market, Friday, April 03, 2009: Not even grisly job losses could get in the stock market’s way Friday. The Dow Jones industrial average clawed higher to end above 8,000 for the first time in nearly two months, and logged its fourth straight week of gains.
The last time the Dow rose for four consecutive weeks was between September and October of 2007 — when the index reached its all-time high above 14,000.
The Labor Department’s March unemployment report was a big hurdle for the market. The numbers were certainly grim, but not terrible enough to derail an emerging sense of optimism over the past four months that the economy may be beginning to right itself. (headline & commentary courtesy of AP via Yahoo Finance)
ETF/CEF Low Volatility:
- BIL SPDR Lehman 1-3 T-Bill
ETF/CEF Discussion: RSI shows only one pick today after a rather blah market. It responded in kind with a blah pick of T-Bills (look at the chart). Don’t get me wrong, it is a good pick, but not very exciting. Anyway, have a good weekend.
Catch you Monday after the close.
STOCKS PUSH RALLY INTO 4TH WEEK AS ACCOUNTING RULES EASE AND G20 LEADERS PROMISE REFORMS – RSI PICKS INCOME & REAL ESTATE FUNDS April 2, 2009
Posted by Marlowe Cassetti in BNA, EAD, HRP, HYG.add a comment
Today in the market, Thursday, April 02, 2009: Investors dove into stocks Thursday, extending a rally that gave the Dow Jones industrial average its best four weeks since 1933.
Stocks rose across the board in heavy trading following an accounting rule change that will help banks pare their losses and after commitments from world leaders to toughen regulatory oversight of financial institutions.
The Dow broke through 8,000 for the first time since Feb. 9 but ended slightly below that level ahead of the government’s employment report Friday that could easily upset the market if it comes in below forecasts — or send prices rocketing higher if it’s better than expected.
The Dow is now up 20.4 percent over the last month, its biggest percentage gain in a four-week period since the spring of 1933. Bits of good news about the economy in recent weeks, including better-than expected-numbers on housing and manufacturing, have given investors more reasons to buy. (headline & commentary courtesy of Yahoo Finance)
ETF/CEF Medium Volatility:
- BNA – Blackrock N A Govt Incm
ETF/CEF High Volatility:
- EAD – Evergreen Income Advantage Fund, Inc.
- HRP – Hrpt Properties Trust
- HYG – iShares iBoxx High Yield Corporate Bond Fund
ETF/CEF Discussion: A great market day but a muted response from RSI. What gives, is it getting tired? RSI that is, the market appears to have gained strength. I won’t comment on today’s picks other than they are good, conservative funds. Also HRP is not a ETF/CEF fund, but rather a REIT. Interesting pick that has been picked in the past. So, give them a look as an alternative to the usual market hype.
Catch you tomorrow.
WALL STREET BEGINS 2ND QUARTER SLIGHTLY HIGHER – RSI SELECTS LATIN AMERICAN FUNDS IN ADDITION TO COMMODITIES AND INCOME FUNDS April 1, 2009
Posted by Marlowe Cassetti in CH, EVG, EWZ, GCS, GDX, ILF, MOO, NPI, NSL, RSX, TTF.add a comment
Today in the market, Wednesday, April 01, 2009: Wall Street began the second quarter on solid footing Wednesday as better-than-expected economic reports helped the market extend a four-week rally.
After falling in the early going on disappointing jobs data, the Dow Jones industrials ended with a gain of 153 points following reports showing a rebound in pending home sales and improving manufacturing activity. Other major indexes rose about 1.5 percent.
Financial stocks led the market higher, followed by big gains in the technology and energy sectors. As sentiment about the economy improves, investors have been buying up industries they believe are likely to lead the country out of recession. (headline & commentary courtesy of AP via Yahoo Finance)
ETF/CEF Medium Volatility:
- EVG – Eaton Vance Short Duration Diversified Income Fund
- NPI – Nuveen Prem Incm Muni Fund
ETF/CEF High Volatility:
- CH – Chile Fund, Inc.
- EWZ – Brazil iShares
- GCS – Scudder Global Commodities Stock Fund Inc.
- GDX – Market Vectors Gold Miners
- ILF – Latin America 40 Index iShares
- MOO – Market Vectors Agribusiness
- NSL – Nuveen Senior Income Fund
- RSX – Market Vectors Russia ETF Trust
- TTF – Thai Fund, Inc.
ETF/CEF Discussion: A nice start to the month of April, although it could be an April Fools Day trick. I hope not. Anyway, RSI has shown its light on some new sectors today that includes foreign and commodity funds. Be aware that there are three CEF funds on the list (hint they have “Inc.” at the end of their name) and they are all sporting sizeable discounts to their NAV plus reasonable expense ratios. Take a look if you are interested in investing overseas.
FYI – I ran RSI earlier, around noon today, since I was looking to deploy some of my cash and reallocate resources. I purchased positions in MOO and EWZ and lightened up my holdings in TIP. Since I was doing this as an asset allocation move, I realized, after the fact, that I was “front running” these two funds that would be mentioned in my nightly blog. I apologize for this and in the future if this happens again, I will put out a quick notice on the blog of my intention regarding such a trade.
Catch you tomorrow.
