Strong earnings from Caterpillar drive Dow higher – RSI picks Grains Index ETN (GRU) April 29, 2011
Posted by Marlowe Cassetti in GRU, UNG.add a comment
Caterpillar drove the Dow Jones industrial average higher Friday after the company reported a huge gain in first-quarter earnings. The Dow added 4 percent in April, its best month since December.
The Dow rose 47.23 points Friday, or 0.4 percent, to close at 12,810.54. Caterpillar accounted for 21 points of those gains. The company’s stock has soared over the past year on booming demand for its products.
Both the Nasdaq and the S&P 500 had their best month since February.(commentary & photo courtesy of AP)
Today the market averages put in small percentage gains. However, the RSI portfolio had a much better day and beat the averages by 2x. The gains were led by a 2.29% rise in our holding of UNG.
After Friday’s close RSI picked a “soft commodity” in the grains ETN:
- Buy 3130 shares/$1,000 Risk, ELEMENTS MLCX Grains Index TR ETN (GRU); Volatility = 4.18%
Kind of an interesting twist since the soft commodities have a connection with India, a RSI favorite and recent pick. Let’s look at the chart. Money was flowing out of this fund but in the later part of February, the trend reversed. The past two days the price reversed from a loss to ending up 3.30% today. Holding its current price levels and moving higher from here should be a good entry point.
Have a great weekend and I’ll catch you later.
Late breaking RSI pick – WisdomTree India Earnings (EPI) April 29, 2011
Posted by Marlowe Cassetti in EPI, INP.add a comment
Data provider problems caused RSI to get a late start on generating new picks. Anyway, today RSI continued its attraction to India ETF by picking another one:
- Buy 422 shares/$1,000R WisdomTree India Earnings (EPI) Volatility = 3.80%
This chart was generated a couple of minutes after the market opened this Friday morning, so the volume is understandably low. It is currently in correction, so if you are interested, wait for the correction to run its course. The volatility is on the low end, so RSI requires a large commitment for a 1R risk exposure. If you are interested in establishing a position in India also look at RSI’s recent pick of iPath MSCI India Index ETN (INP). Its volatility is a bit higher at 4.2%.
Sorry for the pick delay, but it isn’t time critical because of the correction. Catch you later.
Nasdaq hit a 10-year intraday high on Fed chief’s view – RSI keeps striving up April 27, 2011
Posted by Marlowe Cassetti in PDP.add a comment
U.S. stocks extended gains on Wednesday, with the S&P and the Nasdaq near session highs after the Federal Reserve signaled it was willing to maintain its extensive support for the U.S. economy and corporate earnings continued to impress.
The Fed’s policy-setting Federal Open Market Committee said in a statement it intends to complete its $600 billion bond buying program in June as scheduled. (commentary & photo courtesy of Reuters)
The RSI portfolio dropped early today and then strived back to a nice profit led by 1+% gainers in Spain, Taiwan, 2X S&P500 and short US T-Bonds ETFs. On the negative side, Turkey and O&G equip/services had losses. The position in PDP sits at less than $1 below its alert level for a trailing stop, so maybe in the next few days we will take +2.0R profits in this ETF. I’m looking to build some additional cash reserves in the portfolio in order to take advantage of the next RSI buy signals.
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On the topic of portfolio/trading strategy, I have been experimenting with some different techniques. Instead of a “bang-bang” approach of a stop loss of -1R and starting a trailing profit stop at +2.0R, I’m looking at moving the stop loss up to 0.0R when the profit level moves above the +1R level and so forth. I see some useful, but preliminary signs of merit. I’ll report when I flesh out this technique.
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The RSi system is down tonight. If any new buy signal emerges, I’ll report on it tomorrow.
Earnings push stock indexes higher April 21, 2011
Posted by Marlowe Cassetti in PDP.add a comment
Strong earnings reports from big companies including Apple Inc. and UnitedHealth Group Inc. lifted stocks across the market Thursday.
The Dow Jones industrial average closed at another 2011 high. The 30-company index rose 52.45 points, or 0.4 percent, to 12,505.99.
Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 3.7 billion shares.
Markets will be closed on Friday for the Good Friday holiday.(commentary & photo courtesy of AP)
Again the RSI portfolio did well today beating the S&P500 index. Four of the 13 positions turned in daily gains in excess of 0.2R. The only holding showing red was EWV, the short Japan ETF. PowerShares DWA Technical Leaders Portfolio (PDP) is within a short striking distance of triggering the commencement of setting a trailing profit stop at the +2.0R level.
No RSI picks today … catch you later.
Markets rally on company results, outlooks April 20, 2011
Posted by Marlowe Cassetti in EWV, USD.add a comment
Strong profits and outlooks from tech and manufacturing companies propelled U.S. stocks higher on Wednesday, delivering the biggest lift to sentiment since quarterly earnings reports began a week ago. Leading the broad rally were Intel Corp, the most actively traded stock on the Nasdaq, and United Technologies Corp, Dow components that gave strong outlooks. Chipmaker Intel forecast second-quarter sales well above analyst expectations while United Tech raised its full-year profit view. (commentary & photo courtesy of Reuters)
The RSI portfolio had an outstanding day today, beating the S&P500. It was buoyed by a 9.9% rise in Ultra Semi (USD). The only loser was Short Japan (EWV) with a 3% loss. Anyway, big smiles today.
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No RSI buy picks today. Catch you later.
Health care & materials lift stocks – Bought Rydex 2x S&P 500 (RSU) April 19, 2011
Posted by Marlowe Cassetti in PIN, RSU.add a comment
Encouraging results from health care and materials companies lifted U.S. stocks on Tuesday, but weak earnings from Goldman Sachs limited gains in a market skeptical of the growth outlook.
Investors were reluctant to make big bets as the market readied for a spate of high-profile earnings. Volume was extremely low, with 6.65 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year’s daily average of 8.47 billion. (commentary & photo courtesy of Reuters)
The RSI portfolio outperformed the market Tuesday with three holdings putting in+0.3R gains. The three losing positions were miniscule. Today I opened a position in Rydex 2x S&P 500 (RSU). I know I didn’t wait for its correction to run its course but the intraday chart suggested it had put in a local bottom. We shall see. RSI’s other pick, PowerShares India (PIN) may need more time before it completes its correction.
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No RSI buy recommendations today. Catch you later.
Stocks sink after S&P issues warning on US debt – RSI picks PowerShares India (PIN) & Rydex 2x S&P 500 (RSU) April 19, 2011
Posted by Marlowe Cassetti in EWV, INP, PIN, RSU, TUR.add a comment
A warning from Standard & Poor’s that the agency might lower its rating on U.S. government debt sent stocks on their steepest slide in a month Monday.
S&P said there is a 33 percent chance it would lower the country’s credit rating from AAA in the next two years if Washington fails to pare the country’s debts.
The Dow Jones industrial average, the S&P 500 index and the Nasdaq composite all had their sharpest falls since March 16. (commentary & photo courtesy of AP)
Monday, the RSI portfolio took a sharp drop too led by Turkey (TUR) down 0.63R, the biggest loser. The only winner was Short Japan (EWV). Right now the strategy is to stick by the system and make certain the stops are properly placed, sit back and relax.
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At the close on Monday, RSI issued a new buy signal:
- Buy 428 shares ($1,000 Risk) PowerShares India (PIN)
- Buy 529 shares ($1,000 Risk) Rydex 2x S&P 500 (RSU)
This pick of PIN mirrors RSI’s recent pick of iPath MSCI India Index ETN (INP) on April 13th. The chart of PIN is almost identical with INP. It too has fallen in recent days. The relative performance and money flow still look strong and I would expect good performance after the current correction has run its course.
RSU is a leveraged, double S&P 500 ETF. So when the market recovers this should go up twice as fast as the market. Yes, this is a risky bet but there may be something here. And like PIN, wait to buy after it completes its correction.
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Followers of RSI will notice that I delayed publishing this blog until the morning before the market opened. I may do that more in the future. Have a good day.
Data lifts Wall St but Google weighs on tech – Watching INP April 15, 2011
Posted by Marlowe Cassetti in INP, PDP, TBF.add a comment
Stocks rose on Friday as encouraging economic indicators overshadowed disappointing results from Bank of America and Google.
A government report showed underlying inflation pressures remained contained in March, while a survey showed April consumer sentiment rose more than expected. Investors have been concerned that higher energy and food costs would slow consumer spending. (photo & commentary courtesy of Reuters)
The RSI portfolio ended the day with a nice gain. The best performing fund was PDP at +0.19R and the loser was TBF at -0.15R. No alert on INP as it has slipped back in price. Yes, the cash reserves are burning a hole in my virtual pocket, but I have to use discipline and wait for the pullback to complete its trajectory.
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No RSI picks today .. Have a great weekend.
Stocks edge higher, but not very much April 14, 2011
Posted by Marlowe Cassetti in INP.add a comment
Financial stocks fell broadly Thursday, left out of a late lift that pared earlier losses for most major stock indexes.
The Standard and Poor’s 500 stock index added 0.11 point, or less than 0.1 percent, to close at 1,314.52. The Dow Jones industrial average rose 14.16, or 0.1 percent, to 12,285.15. The Nasdaq composite lost 1.30, or 0.1 percent, to 2,760.22. (photo & commentary courtesy of AP)
I set an alert on yesterday’s RSI pick of iPath MSCI India Index ETN (INP). If the price of INP rose above $73.65 (a recent local high), an alert will be triggered, and my broker will send me an alert notice. No alert was issued but I’m in no hurry.
No RSI picks today … catch you later.
Stocks edge higher on better economic data; Bought iShares MSCI Turkey Invest Mkt Index (TUR) today; RSI signals Buy iPath MSCI India Index ETN (INP) April 13, 2011
Posted by Marlowe Cassetti in INP, TUR.add a comment
Stock indexes gave up early losses and edged higher Wednesday after the Federal Reserve reported encouraging news on the economy. Manufacturing, consumer spending and corporate hiring increased in all 12 regions surveyed by the central bank. (photo & commentary courtesy of AP)
Well we have a lot of action today. First I bought the recommended shares in iShares MSCI Turkey Invest Mkt Index (TUR). Then after the markets closed RSI issued a new buy.
- Buy 130 shares/$1,000 risk of iPath MSCI India Index ETN (INP); Set stop loss at -1.0R and an alert at +2.0R to initiate a 0.3R trailing stop
Holy canola, first RSI picks Turkey and today it picks India. What’s next? Anyway, INP took a 2.5% jump today and it got RSI’s attention. Let’s look at its chart.
Since early February, INP has shown good strength with positive money flow. It has corrected and if today’s bounce has legs, I will be buying it in the next day or so.
Have a good night and I’ll catch you later.
