Another down market day – My watch list November 30, 2010
Posted by Marlowe Cassetti in AGQ, BAL, DAG, DBA, DBB, DBC, DJP, EWT, GSG, IJS, IWC, JJC, MHY, RJA, RJI, SGG.add a comment
No new RSI picks today and none since November 24th.
Here is my watch list of funds that appear to be turning around from the recent correction:
Commodities DBC, GSG, DJP & RJI; Agriculture DAG, DBA, & RJA; Sugar SGG; Cotton BAL; Copper JJC; Silver AGQ; Metals DBB; Taiwan EWT; Small Value IJS; Microcap IWC; Hi Income MHY
I will continue to monitor these funds and I’ll let you know if I buy anything.
Stocks slide on a down, holiday shortened week – No RSI picks today November 26, 2010
Posted by Marlowe Cassetti in DBC, GSG, MDY, USD, XSD.add a comment
I’m still reviewing RSI’s recent picks looking for trends and entry points. Most look to have questionable trends and some look downright weak. Surprisingly MDY the mid-cap ETF looks relatively strong, as well as USD & XSD. the semiconductor ETFs. The commodities funds,DBC and GSG have made a good recovery. These five are the best of the bunch. Something to do over the weekend is to analyze these funds. There are some in the financial and homebuilder sectors that will make it on the “catch a falling knife” list sometime in the future, but not now. Just be patient.
Have a great weekend.
Stock sharply higher on positive economic data – RSI picks iShares Dow Jones US Broker-Dealers (IAI) November 24, 2010
Posted by Marlowe Cassetti in IAI.add a comment
A strong up day provided an impetus for RSI to make a new pick:
- Buy 385 shares iShares Dow Jones US Broker-Dealers (IAI); Stop = -$2.59 Target = +$7.78 Volatility = 3.84%
A couple of things about this pick. It trades on light volume, not thin, but not heavy. Secondarily, its recent downtrend may represent a good buying opportunity when it completes this move. Personally I’m not wild about the broker/dealer sector. I cannot give you a good reason for my lack of enthusiasm, but I feel that this sector will continue to underperform the market.
Have a great Thanksgiving.
Korean conflict, European worries weigh on stocks – Two sells & one buy November 23, 2010
Posted by Marlowe Cassetti in EWT, GDXJ, GUR.add a comment
Stocks fell Tuesday as a flare-up of tensions between North and South Korea combined with downbeat news on the economy gave investors plenty of reasons to sell ahead of the Thanksgiving holiday.
On this down day two of my remaining funds hit their intermediate profit stops. The funds are SPDR S&P Emerging Europe (GUR) and iShares MSCI Taiwan Index (EWT). They both had good profits, but the run is over now. However on the heals of the sell orders, I initiated a new position in Market Vectors Junior Gold Miners ETF (GDXJ) by purchasing the requisite number shares for a –1R risk.
GDXJ has been beating the market and money is flowing into this fund. It has bounced off its lower trendline and appears to have recovered nicely. It is a very volatile so I will monitor it closely. See my blog entry of November 15th when RSI first picked this fund.
Catch you later.
Stocks end mixed on anxiety – No RSI picks November 22, 2010
Posted by Marlowe Cassetti in KOL, MDY, USD, XSD.add a comment
The NASDAQ did well, but the S&P500 and Dow 30 fell today. The RSI portfolio ended flat, but that is okay for a day like today.
I spent this weekend reviewing RSI’s recent picks to look at what might be promising. So far the most interesting are:
- SPDR S&P MidCap 400 (MDY)
- Market Vectors Coal ETF (KOL)
- ProShares Ultra Semiconductors (USD)
- SPDR S&P Semiconductor (XSD)
These are on my watch list. I’ll let you know if and when I move on any of these candidates.
Catch you later.
Stocks end the week with small gains – RSI signals dry up November 19, 2010
Posted by Marlowe Cassetti in AMJ, EWT, GUR.add a comment
This was a flat week, but the market ended the week by eking out small gains. The RSI portfolio also eked out a small gain. The remaining holdings in the portfolio are AMJ, EWT & GUR. All the rest of the holdings were sold out this past Tuesday, all for gains based on total returns. The reason I equivocate is that one fund was sold for a 4% capitol loss, but since it had yielded over 8% in the nine months it was held in the portfolio its total return was 4%. The question before me is, where and when to redeploy the liquid assets? I’ve been reviewing all the recent RSI recommendations and there are a few that are tempting me. But nothing I would go out and buy Monday. I recommend that you too review the past selections and judge for yourself.
There were no RSI picks for the last few days including today. I guess the drop off in recommended buy candidates has dried up. That must be a sign of something .. but what? I could speculate that it may be a sign of a turning point, but that would be just a guess. And guessing isn’t the scientific method.
Have a great weekend. Catch you later.
The market selloff continues on Tuesday – RSI stops hit in mass November 17, 2010
Posted by Marlowe Cassetti in Blogroll.add a comment
Tuesday the market selloff hit the RSI portfolio in spades. A large number of intermediate profit stops were hit and many of the RSI portfolio positions were sold. Too many for me to adequately cover. Almost all the funds sold were sold at a gain, some at a substantial gain. Portfolio gain has suffered a drawdown, but that is the nature of investing. But on the bright side there is a bunch of cash that can be put to use on new opportunities and new ideas. I will be monitoring RSI’s recent and future picks to sniff out potential buys.
RSI had no picks after the Tuesday close.
Catch you later.
Markets are flat – RSI likes Junior Gold Miners (GDXJ) gyrations November 15, 2010
Posted by Marlowe Cassetti in GDXJ.add a comment
The market was having a nice up day, but sold off at the end and closed flat. The RSI portfolio got a bigger hit as the income producing funds were down. Anyway RSI made a new pick after the market closed:
- Buy 359 shares Market Vectors Junior Gold Miners ETF (GDXJ) Stop = -$2.78 Target = +$12.18 Volatility = 9.04%
This pick was generated by a module that seldom gives a buy signal. It looks for unusual price excursions and GDXJ has gone through some recent gyrations. Let’s examine the chart. It made a high four days ago and has slipped in price since then. It has been outperforming the market and money is flowing into the fund. It sports a very high volatility which is to be expected by the junior gold mining companies. In this case juniors are outfits who are a couple of steps below established and producing gold mining companies. If you are capable of handling the risk, buy after the current correction runs its course.
Catch you later.
Stocks sell off on fears – RSI likes Homebuilders (XHB) & Sugar (SGG) November 14, 2010
Posted by Marlowe Cassetti in SGG, XHB.add a comment
It was a difficult day on Wall Street, with the S&P500 ending a five week wining streak. Many of the RSI portfolio holdings, such as commodities, emerging markets and materials, proved to be at the brunt of the decline. However, with all this going on, RSI managed two new buy recommendations after the market closed on Friday:
- Buy 433 shares SPDR S&P Homebuilders (XHB); Stop = -$2.31 Target = +$6.92 Volatility = 5.71%
- Buy 107 shares iPath DJ-UBS Sugar TR Sub-Idx ETN (SGG); Stop = $9.27 Target = +$18.54 Volatility = 12.13%
Homebuilders and sugar, what a combination! Anyway, here is my take on the two. Homebuilders have been suffering for the past few years and recovery is still not in sight. However, XHB has been in a nice uptrend since early September and it has started beating the market. Currently the fund has made a correction, but when it is over this should be a good entry place.
SGG has been on a tear for a number of months, but has been hit by a two days of heavy selling. Let’s face it, with the FED devaluing the dollar with QE2, commodities will only rise for the foreseeable future. Wait for this correction to abate and pick a good entry point to buy this market beating fund.
I hope you had a good weekend … I did. It should be an interesting week ahead.
Stocks tumbled Thursday – RSI picks a financial fund plus cotton *What!!!* November 11, 2010
Posted by Marlowe Cassetti in BAL, XLF.add a comment
Yes, stocks sunk on news from Cisco Systems and the NASDAQ was hit hard –0.9%. The RSI portfolio was hit too but less than half of the NASDAQ loss.
And now for the shocker of the week … RSI picked a fund from the dodgy financial sector. Also it picked a cotton fund. What a dichotomy. Anyway, lets look at these tow selections:
- Buy 579 shares Financial Select Sector SPDR (XLF); Stop = -$1.73 Target = +$5.18 Volatility = 4.55%
- Buy 126 shares iPath DJ-UBS Cotton TR Sub-Idx ETN (BAL); Stop = -$7.93 Target = +$15.20 Volatility = 9.43%
Let’s start with XLF. Although not visible on this chart, this fund has been in a long flat period with the price between $14 and $16. It has vastly underperforming the market but now money is now flowing into this fund. If you want to be a contrarian, this may be your fund.
BAL invests in the commodity sector with cotton. Cotton has reached levels not seen in a couple of centuries. And the chart below looks like a rocket launch. This fund is an ETN as opposed to an ETF. Please understand this distinction. This high volatility ETN is in the process of a pullback and when it is over it might be a good opportunity.
Catch you later.
