Wall Street rallies for 4th day; Greek government wins vote – RSI picks BHH June 21, 2011
Posted by Marlowe Cassetti in BHH, SRTY.trackback
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.
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