Wall Street up as S&P 500 tops 50-day moving average – RSI likes coffee (JO) June 30, 2011
Posted by Marlowe Cassetti in JO.add a comment
Wall Street rose for a fourth consecutive session on Thursday in an end-of-quarter rally that was boosted by a surprisingly strong economic report covering the U.S. Midwest.
The major stock indexes rose 1 percent, including the benchmark S&P 500, which climbed above its 50-day moving average at 1,317 despite analysts’ expectations it would meet resistance.
The Dow Jones industrial average .DJI was up 139.60 points, or 1.14 percent, at 12,401.02. The Standard & Poor’s 500 Index .SPX was up 12.60 points, or 0.96 percent, at 1,320.01. The Nasdaq Composite Index .IXIC was up 31.47 points, or 1.15 percent, at 2,771.96. (commentary & photo courtesy of Reuters)
Again RSI’s holdings beat the market indices today with a 1.4% gain. It was boosted by a 5.3% gain in Ultra Semi fund and 3% rise in the Spain ETF.
After the market closed today RSI had a buy recommendation:
- Buy 365 shares iPath DJ-UBS Coffee TR Sub-Idx ETN (JO); Volatility = 4.0%
JO has broken out through the top of its descending price channel. Maybe signaling a reversal in trend? Maybe so. The bad news is that it is thinly traded (a trade risk) and its low volatility requires a large dollar position to take on a –1.0R risk. Will I buy it? Maybe so, I’ll take a look at it since I have built up some cash reserves.
Well that’s it for Thursday. Catch you later.
Wall Street sinks on Europe’s debt misery – Bought MLPL June 24, 2011
Posted by Marlowe Cassetti in MLPL.add a comment
Wall Street dropped for a third day on Friday on worries about the Italian banking sector and Greece’s debt crisis, but the S&P 500 managed to hold its 200-day moving average in a sign buyers still see value.
The Dow industrials and the S&P 500 fell for their seventh week in the last eight. The benchmark S&P 500 is down 7 percent from its 2011 closing high at the end of April.
Investors are fearful that Greece’s government may fail to pass an austerity plan next week, which could force a default on its debt repayments. The government faces an electorate vehemently opposed to the austerity measures.
The Dow Jones industrial average .DJI dropped 115.42 points, or 0.96 percent, to 11,934.58 at the close. The Standard & Poor’s 500 Index .SPX fell 15.05 points, or 1.17 percent, to 1,268.45. The Nasdaq Composite Index .IXIC lost 33.86 points, or 1.26 percent, to 2,652.89.
For the week, the Dow fell 0.58 percent and the S&P 500 shed 0.24 percent, while the Nasdaq gained 1.39 percent. (commentary & photo courtesy Reuters)
Another bad market day and another bad week too. I purchased a position in RSI’s latest pick MLPL. It was one of the few winners today.
No new RSI picks today … have a great weekend.
Wall Street reverses sharp sell-off on Greek deal – RSI picks MLPL June 23, 2011
Posted by Marlowe Cassetti in MLPL.add a comment
Stocks closed way off session lows on Thursday on news Greece agreed to a five-year austerity plan, but lingering economic uncertainty ultimately drove indexes mostly lower, keeping a downward trend in place.
The Nasdaq wiped out all its losses, ending the session higher and back in the black for the year.
The news out of Greece set the stage for a resolution to Athens’ credit problems, which have hurt investor sentiment around the globe.
The Dow Jones industrial average .DJI dropped 59.67 points, or 0.49 percent, to 12,050.00 at the close. The Standard & Poor’s 500 Index .SPX lost 3.64 points, or 0.28 percent, to 1,283.50. But the Nasdaq Composite Index .IXIC gained 17.56 points, or 0.66 percent, to 2,686.75. (commentary & photo courtesy of Reuters)
For most of today, the RSI portfolio was down big, but it followed the market and ended slightly down. It was a fraction of the potential loss. A good reason not to panic out.
After the market closed RSI issued a buy signal:
- Buy 665 shares UBS E-TRACS 2x Long Alerian MLP Infrastructure ETN (MLPL); Volatility = 4.43%
Yes, I know this fund is a mouthful, but I urge you to investigate this pick. Although it is twice leveraged it has low volatility. Unfortunately it is thinly traded, so one has to use care in buying and selling this fund. On the plus side is that it pays a quarterly distribution that is about a 9% annual yield.
MLPL has been recovering from its recent correction. I expect it will move forward to its upper (green) trendline. I would buy this on any sign of strength. Maybe tomorrow? Hey, what can be better than Infrastructure and high yield?
Have a good evening.
Wall Street falls after 4 up days on Fed’s comments – Bought BHH June 22, 2011
Posted by Marlowe Cassetti in BHH.add a comment
Stocks dropped on Wednesday after the Federal Reserve acknowledged the sluggish pace of the U.S. economic recovery without hinting at further plans for stimulus.
The Fed said the recovery was proceeding more slowly than it had expected. In his news conference, Fed Chairman Ben Bernanke offered nothing to motivate investors to buy equities.
Without new information from the Fed, investors were left to take profits after a four-day rally that lifted stocks from three-month lows. Some analysts see range-bound trading ahead, with 1,295 among the S&P 500′s first targets of resistance.
The Dow Jones industrial average .DJI slid 80.34 points, or 0.66 percent, to 12,109.67 at the close. The Standard & Poor’s 500 Index .SPX dropped 8.38 points, or 0.65 percent, to 1,287.14. The Nasdaq Composite Index .IXIC tumbled 18.07 points, or 0.67 percent, to 2,669.19. (commentary & photo courtesy of Reuters)
This morning I purchased BHH for the RSI portfolio. The portfolio took a hit, less than the market indices, but a –0.5 % hit nevertheless. For the day, all the holdings were in the red.
There were no new RSI buy signals today.
Wall Street rallies for 4th day; Greek government wins vote – RSI picks BHH June 21, 2011
Posted by Marlowe Cassetti in BHH, SRTY.add a comment
Stocks posted gains for the fourth day on Tuesday on growing hopes that Greece will avoid a debt default, adding momentum to the market’s recent rebound.
The Nasdaq had its biggest percentage gain since October, while the S&P 500 marked its best day in two months in what investors believe could be continued short-term buying from deeply oversold levels.
The Nasdaq reclaimed positive territory for the year and led the market’s advance, boosted by a jump in semiconductor stocks. A semiconductor index .SOX shot up 2.5 percent, its best gain since April.
The Dow Jones industrial average .DJI rose 109.63 points, or 0.91 percent, to 12,190.01 at the close. The Standard & Poor’s 500 Index .SPX gained 17.16 points, or 1.34 percent, to 1,295.52. The Nasdaq Composite Index .IXIC climbed 57.60 points, or 2.19 percent, to 2,687.26. (commentary & photo courtesy of Reuters)
The RSI portfolio had a great day too, beating the market averages. Yesterday I took profits in SRTY, the Ultra-short R2000. It would have continued to drag down the portfolio if it had remained in the mix today. It ended up with a +1.4R profit.
After the market closed today RSI issued a buy signal:
- Buy 10,902 shares B2B Internet HOLDRs (BHH); Volatility = 7.98%
Yes, that is almost a volatility of 8%, pretty high for most RSI picks. It appears to be trying to breakout from a downtrend started in early April. I would buy this on a breakout from the descending trendline.
Have a great evening and a successful stock market day tomorrow.
Dow, S&P rise, but Greek woes keep bears on prowl June 19, 2011
Posted by Marlowe Cassetti in Blogroll.add a comment
The Dow and S&P 500 rose on Friday after France and Germany outlined an agreement to aid debt-burdened Greece, but analysts said a recent bearish trend may not be over.
The Dow managed to close just above 12,000, but the S&P 500 barely squeaked out a gain for the week after six straight weeks of losses. The uncertainty surrounding a resolution of the debt crisis kept investors wary of committing more cash to equities.
The Dow Jones industrial average .DJI rose 42.84 points, or 0.36 percent, to end at 12,004.36. The Standard & Poor’s 500 Index .SPX gained 3.86 points, or 0.30 percent, to 1,271.50. But the Nasdaq Composite Index .IXIC fell 7.22 points, or 0.28 percent, to 2,616.48. (commentary & photo courtesy of Reuters)
Not much to say. The RSI portfolio has been dropping most of this week. The good news is that cash reserves are building up waiting for future buying opportunities.
No new RSi buying recommendations after Friday’s market close. I hope you had a good weekend.
Wall Street sinks as Greek fears rise; more losses eyed - June 15, 2011
Posted by Marlowe Cassetti in SRTY.add a comment
Stocks tumbled on Wednesday, driven lower by escalating Greek debt woes, while troubling U.S. data pointed to further losses ahead.
Financials came under fire after Moody’s Investors Service said it may cut the credit ratings of French banks, citing exposure to Greek debt.
U.S. data showed the U.S. economy is facing a troubling mix of higher prices and weak growth.
The Dow Jones industrial average .DJI dropped 178.84 points, or 1.48 percent, to 11,897.27. The Standard & Poor’s 500 Index .SPX lost 22.45 points, or 1.74 percent, to 1,265.42. The Nasdaq Composite Index .IXIC slid 47.26 points, or 1.76 percent, to 2,631.46. (commentary & photo courtesy of Reuters)
SRTY, the Ultra-short R2000 fund came roaring back today. The rest of the holdings turned in a losing performance. So net result was a losing day, but nothing anywhere close to the overall market indices.
No RSI buy signals today.
Wall Street rebounds in oversold market – Unforced error is an expensive lesson June 14, 2011
Posted by Marlowe Cassetti in SRTY.add a comment
Stocks posted their biggest gains in nearly two months on Tuesday as retail sales figures allayed fears over the economy that had driven a six-week slump in the market.
Many analysts said the rally was likely a one-day wonder. Though still weak, the retail sales data was not as bad as most had expected, which provided an excuse to buy after the market had neared its most oversold conditions in a year.
Many headwinds remain, including concerns over debt problems in Europe and the United States, along with the expiration at the end of this month of the U.S. Federal Reserve’s bond-buying program, which has been a key source of liquidity for markets.
The Dow Jones industrial average gained 123.14 points, or 1.03 percent, to 12,076.11. The Standard & Poor’s 500 Index rose 16.04 points, or 1.26 percent, to 1,287.87. The Nasdaq Composite Index advanced 39.03 points, or 1.48 percent, to 2,678.72.
Expectations for further selling this summer hovered in the background even as the market rallied. (commentary & photo courtesy of Reuters)
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In yesterday’s blog, that I didn’t publish, I commented on setting a trailing stop on SRTY, the ultra short R2000 fund. I did set the trail, but I didn’t realize that because of a process error it wasn’t enabled. Thus the trailing stop order wasn’t placed. It was an unforced error on my part. So today, I should have booked a +2.0R profit only to see that it had dropped to only a +1.0R gain. Consequently the RSI portfolio was flat rather than showing a +1.0R gain. It puts me on notice to double check all future orders and tighten up my procedures.
There were no RSI buy signals today.
Dow, S&P end sixth losing week – is seventh on tap? June 10, 2011
Posted by Marlowe Cassetti in SRTY.add a comment
The Dow and S&P 500 closed out their sixth week of losses on Friday as further signs of a global economic slowdown set the stage for more losses ahead.
The deepening gloom raised the prospect for the S&P, which suffered its worst week since August 2010, to break below the year’s low of 1,250 next week.
The Nasdaq wiped out its yearly gains on Friday and also posted its biggest weekly decline since August 2010, as the latest deterioration in sentiment came on fear of flagging Chinese growth and fresh worries about Greece’s debt crisis.
The Dow closed below 12,000 for the first time since mid-March. The Dow Jones industrial average fell 172.45 points, or 1.42 percent, to 11,951.91. The Standard & Poor’s 500 Index slid 18.02 points, or 1.40 percent, to 1,270.98. The Nasdaq Composite Index tumbled 41.14 points, or 1.53 percent, to 2,643.73 at the close. (commentary & photo courtesy of Reuters)
The RSI portfolio was off 0.2%, nothing close to the overall market indices. The short R2000 is right on the edge of tripping the trailing stop threshold. When the market opens on Monday I will be setting the trailing stop on ProShares UltraPro Short Russell2000 (SRTY).
Again, the RSI buy signal didn’t materialize after the market closed. I sure would like to put some cash reserves to work, so I’m looking forward to any new buy signals.
Have a good weekend and I’ll catch you later.
Wall Street bounce fails to impress the skeptics - June 9, 2011
Posted by Marlowe Cassetti in Blogroll.add a comment
Wall Street ended higher for the first time in over a week on Thursday, with the Dow and the S&P 500 rising 1 percent at one point, but many analysts saw the rebound as short-lived.
A report showing record U.S. exports in April eased some concerns about a stalled economic recovery, which had been weighing on the market.
A spike in oil prices helped lift materials and energy stocks. Investors also snapped up beaten-down stocks in the financial sector.
The Dow Jones industrial average gained 0.63 percent. The Standard & Poor’s 500 Index added 0.74 percent. The Nasdaq Composite Index gained 0.35 percent. (commentary & photo courtesy of Reuters)
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The RSI portfolio didn’t gain in today’s muted rally. It lost a bit, 0.2% to be exact. It was held back by a –3.6% loss in the natural gas fund and the ultra short R2000 lost –1.5%. There were no significant gainers on the other side of the tally.
No RSI buy signals today. Catch you later.
