Stocks sink on Libya unrest – RSI picks TAN & BAL February 22, 2011
Posted by Marlowe Cassetti in BAL, DBC, FCG, SGG, TAN, VNM.trackback
Stocks had a bad day today, slipping over 2% on troubling news of civil war in Libya. The RSI portfolio had a commensurate hit too. Yesterday there were many positions over +1.5R and none under -0.5R. After the close today, the picture was different. There were two positions , VNM & SGG, under -0.6R and only two, DBC& FCG, over +1.4R. Quite a reversal of fortunes. What to do now? Stick to our RSI trading plan … Sell at the -1.0R level and set a 0.3R trailing stop upon reaching the +2.0R level. Why continue? Nobody really knows if this is a change in the overall market trend, so selling out now is your vote that the trend has changed. It is tempting to sell the winners and dump the losers, but that isn’t the RSI strategy.
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After the close today, RSI had two buy picks, including a recent favorite:
- Buy 740 shares Guggenheim Solar (TAN); Stop = -$1.35 Target = +$4.05 Volatility = 6.25%
- Buy 117 shares iPath DJ-UBS Cotton TR Sub-Idx ETN (BAL); Stop = -$8.53 Alert = +$18.76 Volatility = 11.28%
TAN has been in a nice uptrend and took a hit today. This fund invests in global solar industries. RSI likes this fund and if you want to have some solar exposure buy this on a recovery.
And here is BAL again for another shot. We have made +5.2R with this one and maybe another +2R is in the cards. It is sure tempting since cotton may still be on fire.
Catch you later.
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