Another down day on the market & RSI picks another Ag ETF August 26, 2010
Posted by Marlowe Cassetti in DBA, RJA.add a comment
Okay, let’s go right to RSI’s pick of the day:
- Buy 498 shares PowerShares DB Agriculture (DBA) Stop = -$2.01 Target = +$6.02 Volatility = 3.10%
This is the third agriculture ETF in a row for RSI to select, there must be something going on in this sector. Looking at the chart there is a strong up move going on and DBA has paused in its rising channel.
I think it would be fine to wait to see if it completes its current price dip and continues its upward progress. As for me I’m not sure that I would buy another agriculture fund, since I already own RJA.
Catch you later.
Rough market today; RSI with another buy – Market Vectors Agribusiness ETF (MOO) August 24, 2010
Posted by Marlowe Cassetti in MOO, RJA.add a comment
MOO what an apt name for the Agribusiness ETF, and RSI picked it today. Here is its call:
- Buy 176 shares Market Vectors Agribusiness ETF (MOO) Stop = -$5.68 Target = +$17.04 Volatility = 5.25%
And the chart shows that it is in a correction within its advancing price channel. It certainly fell with today’s market selloff. However, if it remains within its ascending channel there might be an opportunity to buy on the dip. As for me I do have another agribusiness fund RJA. So I pass on this one to avoid too much portfolio correlation.
Catch you later.
RSI starts the week with Buy SPDR DB International Goverment Inflation Protected Bond (WIP) August 23, 2010
Posted by Marlowe Cassetti in RJA, WIP.add a comment
Not much RSI activity the last few days. My Internet ISP failed Thursday night during a lightning storm and I couldn’t report on my purchase that morning of the required shares of ELEMENTS Rogers Intl Commodity Agri ETN (RJA). There were no RSI signals on Friday, so I passed on blogging that evening. The RSI portfolio eked out a miniscule gain today demonstrating the benefits of a balanced portfolio.
The situation is different tonight since RSI flashed another buy signal:
- Buy 293 shares SPDR DB Intl Govt Infl-Protected Bond (WIP) Stop = -$3.41 Target = +$10.23 Volatility = 2.49%
This is the TIPs of the international bond market. According to Morningstar, WIP pays a yield of 1.45% and has an expense ratio of 0.50% which is surprisingly low for an international fund. The chart below shows that it may be stopping at the lower ascending trendline making for an opportunity to buy on the dip. Although its average daily volume is around 100k shares, it has been trading recently 1/3 of that volume. Morningstar quotes its bid/ask spread at 5.31%, so use caution on a buy or sell. Since WIP has a low volatility of 2.5%, it requires a $16k investment for a $1k risk. Something else to ponder. I will pass on this one, but it just may interest others.
Catch you later.
RSI’s materials theme continues – buy Materials Select Sector SPDR (XLB) August 18, 2010
Posted by Marlowe Cassetti in XLB.add a comment
RSI’s recent theme has shifted from international and emerging market funds to more material and commodity funds. This shift is exemplified by today’s pick:
- Buy 229 shares Materials Select Sector SPDR (XLB); Stop = -$4.35 Target = +$13.06 Volatility = 5.39%
XLB has a great looking chart and it has produced a classic dip and recovery. It has been a perennial favorate of ETF investors and it trades on huge volume, almost 10 million shares today. If this theme is correct one cannot go wrong with an investment of XLB. It sure looks good to me.
Catch you later.
RSI keeps on picking; SPDR Barclays Capital International Treasury Bond (BWX) & iShares S&P Global Materials (MXI) August 17, 2010
Posted by Marlowe Cassetti in BWX, EWZ, MXI.add a comment
The last few days have been very good for the RSI portfolio. Strong three day gains have been very welcome. Today ISHARES MSCI BRAZIL(EWZ) was up over 3%. Three day’s good performance is really random noise, but it does move the ball down the field and in the grand scheme of things it moves us closer to our ultimate goal.
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Okay, here are today’s RSI picks:
- Buy 228 shares SPDR Barclays Capital Intl Treasury Bond (BWX) Stop = -$4.37 Target = +$13.10 Volatility = 3.05%
- Buy 121 shares iShares S&P Global Materials (MXI) Stop = -$8.20 Target = +$24.59 Volatility = 5.54%
And their charts:
Talking about buying on a dip, this is a great example. For that reason alone I like this ETF. Unfortunately it had light volume today and it pays a yield under 1%, and it is a bond fund? On balance it is in a great sector and worth a look,
Speaking of great sector, global materials has to be a long term positive trend. And here is another classic dip to buy. Again, it is worth a look.
As with anything mentioned in this blog, do your own homework.
Catch you later.
Weak weekly market wrap – What to buy next? August 13, 2010
Posted by Marlowe Cassetti in JJC, KOL, PSP, RJA, SCZ.add a comment
The headlines are heralding the four day losing streak. The RSI portfolio had a good up day today, so I don’t look at today as a losing streak. But right now the pressing question is, What to buy next? The choice, for me, is the following recent RSI candidates:
- ELEMENTS Rogers Intl Commodity Agri ETN (RJA)
- It has recovered nicely and has continued its uptrend
- Good strong volume
- Would be a good portfolio diversifier
- PowerShares Listed Private Equity (PSP)
- Still heading south
- Trading on low volume
- I like the concept
- iPath DJ-UBS Copper TR Sub-Idx ETN (JJC)
- Consolidating for the last few days
- Trading on low volume
- I like copper in a global market recovery
- Market Vectors Coal ETF (KOL)
- Could be completing the dip
- Should do well in a global market recovery
- iShares MSCI EAFE Small Cap Index (SCZ)
- Could be completing the dip
- International small cap has a strong performance history
I have to pick two. One I will buy soon, the other I will buy after jiggering around some of my funds. With the pros & cons, I have to go with RJA as my prime choice. Here is the chart.
It certainly, to me, looks strong and it is beating the market. RJA is a “must buy” for my portfolio. The second choice is a tough choice. I lean toward JJC but the low volume is a problem. I have some time to wait.
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No new RSI picks tonight. Have a great weekend.
RSI picks International agricultural commodities (RJA) August 12, 2010
Posted by Marlowe Cassetti in RJA.add a comment
The agriculture market has been on a tear, and RSI has followed suit and made the following pick:
- Buy 1111 shares ELEMENTS Rogers Intl Commodity Agri ETN (RJA); Stop = -$0.90 Target = +$2.70 Volatility = 4.43%
The chart aptly displays the big move up in ag products. Russia just stopped exporting wheat due to weather and fire problems in their country. RSI doesn’t read the news but it does read the price history and it likes the price action. I like its recent price recovery. One day doesn’t make a trend reversal, so maybe wait for the true picture.
Catch you later.
RSI makes some gutsy calls – Buy SSO & VEU August 11, 2010
Posted by Marlowe Cassetti in SSO, VEU.add a comment
Today was a rough for the stock market but also for the RSI portfolio. All the recent RSI picks took a hit. However, today’s market action didn’t deter RSI into making a couple of gutsy, or maybe stupid, buy recommendations. So here they are:
- Buy 125 shares Ultra S&P500 ProShares (SSO); Stop = -$7.94 Target = +$23.83 Volatility = 8.83%
- Buy 192 shares Vanguard FTSE All-World ex-US ETF (VEU); Stop = -$5.19 Target = +$15.56 Volatility = 4.96%
Let’s examine these two funds. SSO is now trading at the low end of its range. In fact, if the carnage continues, I expect SSO will trade lower still. So the word is to wait for this dip to run its course. Be careful with this high volatility fund.
The same words for SSO can be used for VEU, except that VEU has much less volatility. This fund, global minus the US, is ready made for those of the opinion that the US will lag the rest of the world. We shall see.
Catch you later.
The RSI avalanche continues – Buy EPP, IGE, & PIO August 10, 2010
Posted by Marlowe Cassetti in EPP, IGE, PIO.add a comment
RSI continues to pour out buy recommendations as its trend following module keeps up its pace. Here are the three buys:
- Buy 194 shares iShares MSCI Pacific ex-Japan (EPP); Stop = -$5.15 Target = +$15.46 Volatility = 5.05%
- Buy 219 shares iShares S&P North American Natural Resources (IGE); Stop = -$4.56 Target = +$13.67 Volatility = 5.40%
- Buy 535 shares PowerShares Global Water (PIO); Stop = -$1.87 Target = +$5.60 Volatility = 4.20%
Again we see the emphasis on materials/natural resources and international. PIO is the second, recent water fund picked by RSI. Their charts follow.
All of RSI’s recent picks have been in a general price retracement. I’m looking to rounding out RSI’s portfolio with one or two of the recent picks and I plan to buy the dip, after the retracement appears to completed.
Catch you later.
RSI continues with buy PowerShares Listed Private Equity (PSP) August 9, 2010
Posted by Marlowe Cassetti in JJC, PSP.add a comment
RSI has made an unusual pick today with its selection of PSP. Imagine an ETF that follows the private equity investments. It is an interesting concept for a fund. Here is the pick:
- Buy 903 shares PowerShares Listed Private Equity (PSP); Stop = -$1.11 Target = +$3.32 Volatility = 4.75%
I cannot go into all the facets of private equity, but if you are interested, I suggest you research this further. PSP pays a yield of a respectable 3.38% which is better than most investments are paying today. The chart below shows that it has consolidated within a nice uptrend.
With RSI’s recent picks of coal and copper ETFs, and now this pick I’m conflicted as which one of these to buy. My portfolio is lacking in the materials sector, so I’ve been favoring the copper fund JJC. Now with PSP in the mix I have to make a decision. I will let you know which one I chose.
Catch you later.
