Flat market today – RSI picks CurrencyShares Euro Trust (FXE) January 25, 2011
Posted by Marlowe Cassetti in FXE.trackback
Today all the major market averages ended close to unchanged; in other words flat. RSI picked the Euro currency fund:
- Buy 133 shares CurrencyShares Euro Trust (FXE); Stop = -$7.50 Target = +$22.48 Volatility = 2.20%
I’m a bit reluctant to recommend this low volatility fund because of the large dollar position required to risk -1R. It is based on the principal of the lower the volatility the larger position required. What’s the harm? Well it ties up portfolio capital which has a tendency to dampen portfolio performance.
The chart shows the recent Euro rise, which triggered RSI’s buy recommendation. This rise may only be temporary, so if you are interested in this fund (and I’m not) you might wish to wait for this move to materialize.
Catch you later.
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