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A good September ends with RSI picking EFA & DGP September 30, 2010

Posted by Marlowe Cassetti in DGP, EFA.
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The markets were off today, but overall the month was good for those investors in the market and likewise for the RSI portfolio.

Okay, RSI has three recommendation today:

  • Buy 186 shares iShares MSCI EAFE Index (EFA); Stop = -$5.37 Target = +$16.11 Volatility = 3.91%
  • Buy 636 shares PowerShares DB Gold Double Long ETN (DGP); Stop = -$1.57 Target = +$3.14 Volatility = 4.29%

These two picks are generated by two separate modules and that is why they look in conflict. All I can say is that isn’t unexpected. I’ll call it a “fielders choice”. Let’s look at the charts.

image

EFA has a huge market following and represents “the foreign ETF”. It looks as it is running out of steam, but any pullback should be a good entry point. The rising magenta means it its beating the US market and the cyan line represents money flow into this sector. That is good enough for me.

image

DGP looks like a space launch. It is reinforced by positive accumulation and it is beating the market. Although it is a double leveraged fund, it sports a modest 4.3% volatility reading. I like this pick and I would buy this on a pullback.

Catch you later.

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