RSI starts the week with Buy SPDR DB International Goverment Inflation Protected Bond (WIP) August 23, 2010
Posted by Marlowe Cassetti in RJA, WIP.trackback
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.
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