STOCKS SLIDE AS NEW HOME SALES FALL – RSI TAKES A HIT BUT KEEPS ON PICKING October 28, 2009
Posted by Marlowe Cassetti in AGQ, RSX.trackback
The market took quite a bath today as economic worries took center stage. My position in AGQ was stopped out for a loss. I will check out RSI’s other picks to see if they too hit stops and if there are any I’ll report tomorrow.
Not to be deterred, RSI made a surprising pick tonight:
- Buy 370 shares* of Market Vectors Russia ETF (RSX) tomorrow on the open. Enter a stop loss $2.67 below your entry price and a profit target $4.01 above entry price.
One could say picking a Russia fund is in keeping with the theme of commodities that RSI recently favors. Russia is a major producer of energy as well as other commodities. RSX has a Ns volatility of 9.7%, a reasonable expense ratio of 0.62% and it is actively traded at several million shares per day. It suffered a 7.45% loss today, so RSI is looking to benefit from a price rebound.
I’m seriously considering entering an order for RSX at tomorrow’s open. I’ll let you know tomorrow.
I have been reviewing RSI’s back-tested historical results and I concluded that the leveraged funds are detrimental to the performance of the system. I therefore removed all leveraged ETFs from RSI’s database. So in the future you won’t see AGQ but instead SLV, or that’s what I expect to happen.
Have a good evening. We are bracing for a major winter storm.
* remember 370 shares represent a 1% risk on a $100,000 portfolio. Scale your position accordingly.
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