Markets close flat – RSI picks Oil Services Holders (OIH) October 30, 2010
Posted by Marlowe Cassetti in OIH.trackback
Again it happened … the markets were flat and the RSI portfolio sported a nice gain. Examining today’s RSI performance shows good gains from GDX, PSP, AMJ, FXI and RJA indicating strong numbers from the gold miners, private equity, energy MLPs, foreign currency and the agriculture sectors. These areas are underrepresented by the usual US market indices. RSI isn’t about one day performance. However, it is instructive to understanding where there are divergences and what are the causes. In this case it demonstrates RSI’s strength.
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Friday’s RSI buy recommendation:
- Buy 55 shares Oil Services Holders (OIH); Stop = -$17.92 Target = +$53.76 Volatility = 6.03%
OIH is a “Holder” type of a fund that isn’t quite an ETF and not quite a CEF. I’m not quite sure if you can buy odd lot (such as 55 shares) or only multiples of round lots (100 share lots). Check with your broker to verify that this is still true. As you can see OIH is up on the higher end of the volatility scale, but nowhere as high as the double and triple leveraged ETFs. It has great volume, and money is moving into the fund. On the other hand, it is trading at the high end of its trading range and I would wait for a pullback before buying.
After the market closed on Friday I lost my internet service which was restored Saturday morning. Oh, the joys of country living. But is sure beats what’s in second place. Have a happy Halloween.
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