Stocks turn lower after weaker-than-expected GDP – Reviewing PowerShares DB Commodity Index Tracking (DBC) April 30, 2010
Posted by Marlowe Cassetti in DBC.trackback
Stocks ended April with a big loss Friday on disappointment with two economic reports and worries about a criminal investigation of Goldman Sachs.
Investors lost some of their optimism about the economy after the government’s weaker-than-expected gross domestic product report and news of a drop in consumer sentiment. Reports that the government has started a criminal investigation of Goldman sent financial stocks tumbling. Investors feared that possible charges against the company could have a chilling effect on the banking industry.
The Dow Jones industrial average fell 158 points, and all the major indexes fell more than 1 percent.
The market ratcheted higher and lower this week on alternating spurts of optimism and pessimism about the economy. The Dow had three triple-digit moves. But analysts have been expecting a pullback after almost three months of mostly steady gains. (market commentary & photo courtesy of AP)
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It certainly was a bummer of a week. The RSI portfolio wasn’t hurt that much. I have to check the numbers but I think it ended the week flat. Certainly not what I would have expected from the “worse week since January”. What it has working for it is the almost 50/50 split between income funds & other index funds (those picked by RSI). These two groups are pretty uncorrelated with each other.
Today I want to review PowerShares DB Commodity Index Tracking (DBC). It had a good day today and it has been hovering near its rising upper trendline. I expect DBC to keep plodding along on its upward path. This holding may be a stellar performer. And hey, commodities should be in more demand as the global recovery unfolds.
There are no RSI picks today. Have a great weekend.
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