Wall Street ends a strong quarter optimistic on payrolls – Set trailing stop on iShares Russell Microcap Index (IWC) March 31, 2011
Posted by Marlowe Cassetti in IWC.add a comment
U.S. stocks ended a solid quarter with the barest of moves on Thursday, as investors looked ahead to Friday’s U.S. jobs report to provide a catalyst to push indexes to new highs for the year.
After gaining 5.4 percent in the first quarter, the benchmark S&P 500 hovered near 1,330, a level the index has been unable to break despite several attempts in the past month. A strong payrolls number may tip it over and technical momentum could kick in, lifting stocks further. (commentary & photo courtesy of Reuters)
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You have heard this story before … Today I got a signal that iShares Russell Microcap Index (IWC) had exceeded the +2.0R level. I then entered a trailing stop 0.3R, which is a simple calculation. Just divide 0.3 times your risk by the number of shares you own and you have the trailing parameter in dollars per share. So from this point forward, IWC is on autopilot.
Today the market ended mixed but the RSI portfolio had a good day which is tied to crude oil 30 month high. The portfolio has a heavy weighting in the energy sector ETFs. It appears that RSI has picked some good ETFs that are placed in the right areas.
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No new RSI buy signals today. Catch you later.
Wall Street rides winners as quarter winds down – Risk on or Risk off? March 30, 2011
Posted by Marlowe Cassetti in EWV, IWC.add a comment
U.S. stocks ended higher on Wednesday with activity dominated by money managers buying recent winners, including energy and small-caps, as the quarter nears its end.
The Dow Jones industrial average shot up 71.60 points, or 0.58 percent, to end at 12,350.61. The Standard & Poor’s 500 Index gained 8.82 points, or 0.67 percent, to finish at 1,328.26. The Nasdaq Composite Index climbed 19.90 points, or 0.72 percent, to close at 2,776.79. The Russell 2000 index closed at the highest level since October 2007. (commentary & photo courtesy of Reuters)
The RSI portfolio continues to gain, along with the overall stock market, but at 1/2 of the market gain. Of course, the portfolio is constructed of an entirely different security mix than is found in the major indices. With that said, I’m pleased with the current portfolio performance.
Today IWC closed within a hair of its +2.0R level. It may very well be going into the trailing profit stop mode soon.
Yesterday, I forgot to mention that I didn’t take the full risk on buying EWV. Instead I took 3/4 of my normal risk due to money management considerations (not wanting to have less than zero cash reserves). However, if one is cautions about buying a position in a Ultra-Short fund, maybe not taking the full -1.0R risk is understandable. I can imagine scaling up and down the risk scale. Sort of a risk on or risk off situation.
There were no new RSI buy signals today. Catch you later.
Stocks gain as confidence falls less than feared – Sold VNM & bought EWV March 29, 2011
Posted by Marlowe Cassetti in EWV, GAZ, VNM.add a comment
Stocks finished broadly higher Tuesday after consumer confidence fell less than some analysts had feared. All 10 company groups that make up the S&P 500 index rose by more than 0.3 percent.
As I described in yesterday’s blog entry, I sold my position in Market Vectors Vietnam ETF (VNM). Also, this morning my online broker signaled me that EWV had broken out, so I bought ProShares UltraShort MSCI Japan (EWV). That pretty much loads up the RSI portfolio and reduces the money market account. I will wait for another sell before the next buy action. The RSI portfolio had a good gain today.
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RSI issued a buy signal for GAZ today. It was generated by a different module that issued the recent successful 2.8R trade that was closed on 3/24. I have not to publish the new buy signal for GAZ…. editor’s prerogative, but I will continue to monitor it. It took a nasty tumble today and the module liked the reaction. We shall see in the fullness of time.
Catch you later.
A down day for the markets – Sell issued on Market Vectors Vietnam ETF (VNM) March 28, 2011
Posted by Marlowe Cassetti in VNM.add a comment
Stocks sold off today, not big, but a decline nevertheless. The RSI portfolio fell along with the market.
Normally, RSI relies on stop signals to exit a position. However, there are a few times when a particular module issues a “no stop” sell signal. Today is such a case since RSI issued a sell on its Market Vectors Vietnam ETF (VNM) position. I will take the appropriate action tomorrow and sell VNM. It has been a poor performer and after the close today it was sitting on the -0.75R level.
There were no RSI buy signals today. Catch you later.
Market Correction as the RSI portfolio continues to climb – Bought SPDR S&P Oil & Gas Equipment & Services (XES) March 27, 2011
Posted by Marlowe Cassetti in XES.add a comment
This weekend, I heard an interview with a spokesman from IBD. He talked about what to do investment-wise during the current market correction. What market correction? I took a quick look at the charts for the major US market indices and I see a selloff from mid-February to mid-March. It has climbed nicely back to an uptrend again. The RSI portfolio has such strong weighting in the oil and gas sector it doesn’t follow the stock market indices very well. With that aside, VNM & TBT continue to weigh on the portfolio at -0.75R and -0.62R respectively. On the plus side, IWC & IJS lead the pack at +1.44R and 1.32R respectively.
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On Friday, I purchased SPDR S&P Oil & Gas Equipment & Services (XES) for the RSI portfolio. I had an alert set when it broke out of its local channel. This triggered a buy. So here is more weight in the energy sector. I think this will continue to lead higher.
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There were no new RSI buy recommendations after the market closed on Friday. I hope you had a great weekend .. I did.
Stocks end up 1%; iPath Natural Gas ETN (GAZ) hit trailing stop March 24, 2011
Posted by Marlowe Cassetti in EWV, GAZ, XES.add a comment
A good market gains today. The RSI portfolio did quite well too. I was tied up most of yesterday and I was unable to monitor my positions until after the market closed. I realized that iPath DJ-UBS Natural Gas TR Sub-Idx ETN (GAZ) had exceeded the +2.0R level, so I entered a trailing stop order. Today that trail was hit and the fund sold for a +2.8R gain. This position was bought last Friday and sold today, Thursday for a great profit!
At the present time I am monitoring ProShares UltraShort MSCI Japan (EWV) and SPDR S&P Oil & Gas Equipment & Services (XES). I have alerts set on both of these.
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There were no new RSI picks today … Catch you later.
Stocks edge lower, but the RSI portfolio gains nicely March 22, 2011
Posted by Marlowe Cassetti in GAZ, OIL.add a comment
After a three day rally that pushed the DJIA over the 12,000 mark, stocks settled about -0.3% lower today. RSI portfolio gained a nice +0.6%. This gain was propelled by a +0.92R gain in GAZ and +0.43R gain in OIL. It helps to have a couple of Jokers in the deck with energy prices soaring.
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There were no new RSI buy signals generated after the market closed. Catch you later.
M&A deals lifts stocks – RSI portfolio has a great day March 21, 2011
Posted by Marlowe Cassetti in IWC.add a comment
Investors were back to buying stocks today showing signs of renewed market confidence. All this despite continued unrest around the world. It’s amazing what a strong market will do to a portfolio. There were many positions with +0.3R and +0.2R gains and only two slight losing positions in the RSI portfolio. It is surprising what a good market day can to repair a portfolio. The best one day R gainer is IWC. Interesting … With that said, I monitored RSI’s recent picks to see if there was anything interesting to buy. Nothing looked compelling enough to start a new position. (photo courtesy of Reuters)
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I’m a bit puzzled that there are no RSI picks today. There is always tomorrow .. catch you later.
On Friday – Closed out SDS & bought GAZ & UNG March 18, 2011
Posted by Marlowe Cassetti in GAZ, SDS, UNG.add a comment
This morning I bailed out of my position on ProShares Ultra Short S&P500 (SDS). It had been up nicely, but overnight the profits had melted away. Later I purchased iPath DJ-UBS Natural Gas TR Sub-Idx ETN (GAZ) and United States Natural Gas (UNG) as they were climbing out of its long decline. Yes, I’m doubling up in a single commodity/sector; I am taking the non-diversification risk. These two funds move in lock step. No wonder, they both invest in natural gas futures.
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No RSi picks today, have a great weekend.
Wall Street rebounds – RSI picks ProShares UltraShort MSCI Japan (EWV) March 17, 2011
Posted by Marlowe Cassetti in EWV.add a comment
A nice day in the markets today which buoyed the RSI portfolio. RSI came up with a scary pick today (scary when you look at the chart).
- Buy 407 shares ProShares UltraShort MSCI Japan (EWV)
Of course this is a play on the terrible troubles in Japan. A picture of the chart shows a parabolic rise since the earthquake ripped through this island nation. This rise has been broken over the past two days, but RSI expects that this is a pause before continuing its climb. The volatility is a high 10.72%, so expect fast moves up or down. It is up slightly in after hours trading. This trade can cut both ways, so use caution.
Catch you later.
