Material world lifts stocks; Dow, S&P off for fourth week May 27, 2011
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The Dow and S&P 500 closed out their fourth week of losses with a small gain on Friday, but only with the help of a weaker dollar boosting metals prices and basic materials stocks.
Thin trading made for a lackluster day on Wall Street, with desks short-staffed before the Memorial Day holiday that will keep U.S. markets closed on Monday. Volume was the second lightest so far this year. (commentary & photo courtesy of Reuters)
It was a good Friday leading into this Memorial Day long weekend. The markets were up as was the RSI portfolio. All the RSI positions were in the green, i.e. no losers. Because of problems and schedule beyond my control, I cannot fully run the RSI system today. However if there are any new RSI picks I will report them well before the US markets open on Tuesday.
Have a great weekend and I’ll catch you later.
Stocks edge up, shaking off weak economic news – Bought PXJ today May 26, 2011
Posted by Marlowe Cassetti in PXJ.add a comment
Signs of a sluggish economic recovery sent government bond yields to their lowest level in a year Thursday. But strong earnings and a plea to push Microsoft’s CEO aside helped push stocks higher.
The Dow Jones industrial average rose 8.10 points to close at 12,402.76. It was the second day of gains for the Dow after three days of losses driven by new concerns about Greece’s debt crisis. (commentary & photo courtesy of AP)
I purchased PowerShares Dynamic Oil & Gas Services (PXJ) today after it showed good strength. Overall the RSI portfolio had a good day today.
There were no RSI picks after the market closed today. Have a good day and I’ll catch you later.
Stocks turn higher as crude oil tops $100 a barrel – RSI picks PXJ May 25, 2011
Posted by Marlowe Cassetti in DBB, PXJ.add a comment
The oil rally is on again.
Stocks closed higher Wednesday for the first day this week as rising oil prices offset worries about the global economic recovery. Oil rose nearly $2 to settle at $101.32 per barrel, pushing energy stocks higher.
The Dow Jones industrial average rose 38.45 points, or 0.3 percent, to close at 12,394.66. The Standard & Poor’s 500 index rose 4.19, or 0.3 percent, to 1,320.47. The Nasdaq composite rose 15.22, or 0.6 percent, to 2,761.38. (commentary and photo courtesy of AP)
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The RSI portfolio turned in a market beating day with DBB turning in a +2.19% gain and all positions were in the green.
With all the cash reserves burning a hold in my pocket, I’ve been reviewing many of RSI’s previous picks. At this point silver, cotton and energy ETFs look constructive. This was reinforced after the market closed RSI flashed a buy signal for an energy fund:
- Buy 968 shares of PowerShares Dynamic Oil & Gas Services (PXJ) Volatility = 4.24%
Let’s face it, Oil & Gas services business will continue to be in demand and thus this fund should recover from its recent downturn. It was up over 3% today and it should continue with its recover. It has low volatility, so you have to make a big investment for a -1.0R risk. I will be buying this soon.
Catch you later.
Stocks slip as worries over Europe linger – Stopped out on DZZ May 24, 2011
Posted by Marlowe Cassetti in DZZ.add a comment
Continued worries about Europe’s lingering debt crisis overshadowed a small rebound in oil prices and pushed stocks slightly lower on Tuesday.
Oil rose nearly $2 to $99.59 per barrel after major banks raised their forecasts for crude prices.
The Dow Jones industrial average fell 25.05 points, or 0.2 percent, to close at 12,356.21. The Standard & Poor’s 500 index fell 1.09 point to 1,316.28. The Nasdaq composite fell 12.74, or 0.5 percent, to 2,746.16. (commentary & photo courtesy of AP)
Although the market fell today, the RSI portfolio was essentially flat today. The gamble on RSI last buy recommendation, PowerShares DB Gold Double Short ETN (DZZ), didn’t last long as it hit its stop loss and it was sold for a –1.0R loss. Bought it May 17th and sold it May 24th. Talk about a quick loss, but remember it is all part of the process. Sell stop at the –1.0R level and start a trailing profit stop at the +2.0R level.
There were no RSI picks after the market close today. Catch you later.
Slide in retailers sends stocks broadly lower May 21, 2011
Posted by Marlowe Cassetti in DZZ.add a comment
Stocks closed broadly lower for a third straight week on signs that U.S. consumer demand may be weakening.
Retailers Gap Inc. and Aeropostale Inc. each lost more than 14 percent Friday after cutting their profit forecasts for the year, in part because of higher costs for raw materials and sluggish sales. That was a worrying sign for investors who had counted shoppers to lead a recovery in spending.
The Dow & S&P market indies fell by more than 0.3 percent for the week. The Nasdaq lost the most, 0.9 percent.(commentary courtesy of AP News)
This week the RSI portfolio took a hit similar to the overall market, but to a lesser extent. There have been no RSI buy recommendations this week. We did add DZZ to the portfolio, but it was recommended the previous week. It has been a dry week. Hope you are having a great weekend.
Monday, Debt concerns weigh on stocks – Looking at DZZ, bought it Tuesday morning May 17, 2011
Posted by Marlowe Cassetti in DZZ.add a comment
Stocks fall for second day running, dragged down by technology companies and Europe worries. Technology company troubles and renewed concerns about Europe’s debt dragged stocks lower for a second day.
The Dow Jones industrial average lost 47.38 points, or 0.4 percent, to close at 12,548.37. The Standard & Poor’s 500 index fell 8.30 points, or 0.6 percent, to 1,329.47. The Nasdaq fell 46.16, or 1.6 percent, to 2,782.31.
Commodity prices were mostly lower. Oil prices fell $2.28 to settle at $97.37 a barrel Monday as worries eased that Mississippi River flooding could disrupt refineries and slow demand. (commentary & photo courtesy of AP)
The RSI portfolio fell slightly today, not at all like the overall market. This was due in part to the portfolio holding a 53% cash position, which is high due to the recent selling off of portfolio holdings. All in line with the RSI mechanical system.
RSI last buy recommendations of the Short gold funds are starting to look attractive. I like DZZ since it has been a nice uptrend since it made a local low five days ago.
After the market open I got an alert that DZZ had broken out, so I placed my order to buy.
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No new RSI buy signals after Monday’s market close. Catch you later.
Stocks fall as European financial crisis expands – RSI feels the pain May 14, 2011
Posted by Marlowe Cassetti in PDP, TUR.add a comment
Falling commodity prices are widely blamed for driving down stocks. The Standard & Poor’s 500 index has lost 1.9 percent so far in May. Other indexes are down more than 1.5 percent for the month.
The Dow fell 0.3 percent over the week and 1.7 percent for the month. The Nasdaq was flat for the week and is down 1.6 percent for the month.
The Russell 2000, an index of small companies, ended the week up nearly 0.3 percent, but is down the most so far this month, declining 3.42 percent. (commentary & photo courtesy of AP)
This has been a down week for the RSI portfolio with one position taking a stop loss hit. Since our last post was last weekend, let me recap the portfolio action. On Thursday, our position in TUR was stopped out for a –1.0R loss. On Friday PDP hit its trailing stop and was sold for a +2.0R gain. Although trading netted a +1.0R gain for the week, the NAV of the remaining funds lost ground with the falling stock and commodity markets. We shall see what the future brings.
Stocks end up after solid payrolls - May 6, 2011
Posted by Marlowe Cassetti in TUR.add a comment
An unexpectedly strong report on payrolls helped stocks bounce back on Friday from four days of losses, tempering worries that stocks could follow the sharp declines seen this week in commodities.
The Dow Jones industrial average was up 54.64 points, or 0.43 percent, at 12,638.81. The Standard & Poor’s 500 Index was up 5.09 points, or 0.38 percent, at 1,340.19. The Nasdaq Composite Index was up 12.84 points, or 0.46 percent, at 2,827.56.
For the week, the Dow was down 1.3 percent, the S&P 500 was down 1.7 percent and the Nasdaq was down 1.6 percent. (commentary & photo courtesy of Reuters)
The RSI portfolio was flat not up like the overall market. It was hurt by the –2.15% hit in iShares Turkey Fund (TUR). There were no RSI buy recommendations today. Have a good weekend.
Commodity selling peters out but outlook cloudy – RSI picks double short gold funds DZZ & GLL May 5, 2011
Posted by Marlowe Cassetti in DZZ, GLL.add a comment
Markets took another tumble today including commodities. The RSI portfolio took a tumble as well, but not to the extent as the rest of the indices. After the market closed RSI made the following two picks:
- Buy 2500 shares PowerShares DB Gold Double Short ETN (DZZ) Volatility = 5.62%
- Buy 737 shares ProShares UltraShort Gold (GLL) Volatility = 5.37%
Two double short gold funds look very similar. They are reflecting the volatility of the commodity market. An interesting play. Let’s see if they continue to break the upper downtrend line and reverse. I’ll be looking at them.
Getting the computer problems figured out. Catch you later.
Struggling US economy sends stocks lower – SLV stopped out May 4, 2011
Posted by Marlowe Cassetti in SLV.add a comment
A tough day in the market that brought stocks and most commodities down. Our one day old position in SLV stopped out with a -1.0R loss. A sudden hit. I have to tweak the buy algorithm to better sense the end to a correction following a RSI buy signal. That has been an issue in several prior trades, including this premature SLV entry.
I’m having some computer problems, so I’ll cut this blog short today. Catch you later.
