Strong earnings from Caterpillar drive Dow higher – RSI picks Grains Index ETN (GRU) April 29, 2011
Posted by Marlowe Cassetti in GRU, UNG.trackback
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.
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