A STRONG UP DAY IN THE MARKET – RSI IS BACK! June 1, 2009
Posted by Marlowe Cassetti in ACG, AWF, CAF, DBB, DBV, ETY, EWD, EWW, IGN, IGV, IWM, IXN, PHB, SRS, TAN, UYM, VAW, VBK, VO.trackback
Today in the market, Monday, June 01, 2009: A strong day as the market averages exceed their 200 day moving averages (a baloney figure of merit, but it has become a self fulfilling prophecy). And reflecting the mood of the market, RSI has a lot of picks. Remember these picks are a reflection of this bull move and are not the right place to be if and when this rally fails; i.e. keep your stops tight. I have been using a trailing percentage stop on all my positions and they have served me well in this volatile market environment.
Hi there … it is good to be back although I didn’t anticipate this long pause in service. It was a good sabbatical from my daily blog and I am thinking about restructuring this to a weekly blog. Let me know your thoughts. Also thanks for all your messages of support and encouragement. I really didn’t know how many folks have found this blog important to their financial experience.
ETF/CEF Medium Volatility:
- ACG – AllianceBernstein Income Fund, Inc.
ETF/CEF High Volatility:
- AWF – Alliance Wrld Dlr Govt II
- CAF – Morgan Stanley China A Share Fund
- DBB – PowerShares DB Multi-Sector Commodity Trust Metals Fund
- DBV – PowerShares DB G10 Currency Harvest Fund
- ETY – Eaton Vance Tax-Managed Diversified Equity Income Fund
- EWD – Sweden iShares
- EWW – Mexico iShares
- IGN – Network iShares S&P/GSTI Index Fund
- IGV – Software iShares S&P/GSTI Index Fund
- IWM – Russell 2000 iShares
- IXN – iShares S&P Global Information Technology Sector
- PHB – PowerShares High Yield Corporate Bond Portfolio
- TAN – Claymore/MAC Global Solar Energy Index ETF
- UYM – ProShares Ultra Basic Materials
- VAW – Vanguard Materials VIPERs
- VBK – Vanguard Small Cap Growth VIPERs
- VO – Vanguard Mid Cap VIPERs
ETF/CEF Discussion: RSI has picked a vast array of materials, foreign, and index funds. You won’t find these in the recommendations of “normal” financial channels. What sets these funds apart from the rest is that not only they have good price action, but they also possess something I refer to as conviction. I define conviction as a confluence of price, volume and time that points the way to further price appreciation. I will be referring to a confidence index in future blogs.
I have added a bonus to this blog entry and that is a very contrary play that is double short real estate. Please don’t buy this fund now, just keep this fund in mind when this current market rally breaks to the downside. You may find this to be a very profitable speculation (gamble) when the right time comes.
ETF/CEF Catch a Falling Chainsaw:
- SRS – ProShares Ultrashort RealEstate
A final note about my sabbatical-
I have spent a lot of time studying and running more analysis than you can possibly imagine. I have been greatly influenced by the excellent book Evidence Based Technical Analysis by David Aronson. In the coming weeks and months I will be discussing this book as it applies to technical analysis and RSI. I believe that followers will benefit from this discussion. Have a good day and I’ll catch you later.
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