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.trackback
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.
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