Bernanke Lifts Stocks – Buy PowerShares DB Commodity Index Tracking (DBC) February 24, 2010
Posted by Marlowe Cassetti in DBC.trackback
Federal Reserve Chairman Ben Bernanke gave the stock market the tonic it wanted: Interest rates will stay low.
Stocks rallied Wednesday and ended a two-day slide after Bernanke made his forecast during his semiannual report to Congress. He told the House Financial Services Committee he still expects rates will remain low for an extended period. Investors want to see low-cost borrowing continue to help revive the economy.
Financial stocks helped pull the Dow Jones industrial average up 92 points after the index slid 101 on Tuesday. JPMorgan Chase & Co. and Bank of America Corp. each rose more than 2 percent. Meanwhile, the technology-dominated Nasdaq composite index rose after software company Autodesk Inc. reported stronger earnings and revenue than expected.(market commentary & photo courtesy of AP)
RSI has been sleeping through all these market gyrations. It is a bit disconcerting for me since I have some funds that I want to deploy. I have to remember to be patient and wait for the sleeping RSI to awake. However, as these days of no RSI ETF picks roll on I am contemplating not blogging until there is something to report. So if you notice that I’m not providing a daily blog, it is because there is nothing to report…no buy recommendations and no sell reports.
Of course I wrote the comments above, just prior to running RSI tonight. And guess what? RSI issued the following:
- Buy 770* shares PowerShares DB Commodity Index Tracking (DBC) enter a stop -$1.30 below your filled price. Initiate a trailing stop $2.17 above your entry price.
DBC trades a couple of million shares each day. It is a popular ETF that has a modest volatility of 4.59% and has a minimal bid/ask spread, so you should have an easy time of initiating a trade at a reasonable price. I plan to jump on this train tomorrow.
* Remember the 770 shares represents a 1% portfolio risk for a $100,000 portfolio. Adjust the number of shares to conform with your own risk tolerance.
Catch you tomorrow.
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