Wall Street gains as Fed minutes boost stimulus bets – Bought VXZ August 30, 2011
Posted by Marlowe Cassetti in VXZ.add a comment
Stocks rose for a third straight day on Tuesday in a volatile session, after minutes from the latest Federal Reserve meeting boosted expectations the U.S. central bank will act again to stimulate the economy.
Equities surged near the close of the market, though they quickly pared gains, after the release of the Fed’s August 9 minutes showed the central bank had considered bold steps to help the fledgling economy.
News earlier in the day showing consumer confidence fell to its worst level in two years cemented the growing belief the Fed will have to intervene with aggressive steps when it meets in late September. Many market participants had thought that the odds of more action from the Fed were slim.
The Dow Jones industrial average .DJI was up 20.39 points, or 0.18 percent, at 11,559.64. The Standard & Poor’s 500 Index .SPX was up 2.80 points, or 0.23 percent, at 1,212.88. The Nasdaq Composite Index .IXIC was up 14.00 points, or 0.55 percent, at 2,576.11. (commentary & photo courtesy of Reuters)
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The RSI portfolio had a good day today, along with the equity markets. With the exception of the sugar ETN, all the other positions were in the green today.
Today I monitored the progress of iPath S&P 500 VIX Mid-Term Futures ETN (VXZ). The numbers and chart looked good so I decided to put on a position. Cash reserves are now sitting at a large 40%. In this volatile, downward trending market it is good to have your power dry.
No new RSI picks today.
Wall Street surges 2 percent on Greek bank deal; trade thin – RSI likes volatility August 29, 2011
Posted by Marlowe Cassetti in VXZ, ZROZ.add a comment
Stocks soared more than 2 percent in a broad rally on Monday as a merger between two big Greek banks provided a rare bit of encouraging news out of debt-stricken Europe.
A rebound in consumer spending calmed fears of a new U.S. recession and also helped lift all 10 S&P sectors. Only five S&P stocks ended in negative territory while the CBOE Volatility index .VIX, a measure of investor fear, lost 9.3 percent. But volume was low, amplifying the surge in shares.
The Dow Jones industrial average .DJI was up 254.71 points, or 2.26 percent, at 11,539.25. The Standard & Poor’s 500 Index .SPX was up 33.28 points, or 2.83 percent, at 1,210.08. The Nasdaq Composite Index .IXIC was up 82.26 points, or 3.32 percent, at 2,562.11. (commentary & photo courtesy of Reuters)
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A great day in the equity markets translated into a small loss for the RSI portfolio. Especially hard hit was the position in PIMCO Zeros (ZROZ) that was down –2.65%.
Today RSI has the following buy recommendation:
- Buy 205 shares iPath S&P 500 VIX Mid-Term Futures ETN (VXZ) Volatility = 9.75%
This is a bet on the market volatility increases and it is a high volatility fund. This could be a wild ride, so use great care with this ETN. For the month of August VXZ has been on a tear. It took a –2.47% dip today and RSI is thinking this will be continuing higher. Look for a buying opportunity on VXZ.
Have a great day and I’ll catch you later.
Stocks rebound as investors digest Bernanke speech _ Stimulate commodities? August 26, 2011
Posted by Marlowe Cassetti in Blogroll.add a comment
Wall Street stocks rebounded on Friday as investors digested Federal Reserve Chairman Ben Bernanke’s remarks about the economy and regained hope the door was still open for more monetary stimulus down the road.
Major indexes turned positive after initially extending losses as Bernanke failed to offer any concrete action for monetary easing in a speech at a central bank conference in Jackson Hole, Wyoming.
The Dow Jones industrial average .DJI ended up 134.72 points, or 1.21 percent, at 11,284.54. The Standard & Poor’s 500 Index .SPX was up 17.53 points, or 1.51 percent, at 1,176.80. The Nasdaq Composite Index .IXIC was up 60.22 points, or 2.49 percent, at 2,479.85. (commentary & photo courtesy of Reuters)
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Monetary stimulus from the Federal Reserve will most likely stimulate commodity prices. Last year many gold investors sent Fed Chair Bernanke Christmas cards to thank him for his contribution to their wealth. Will we see that again? We shall see as 2011 unfolds.
The RSI portfolio has a great day today as the non cash portion gained 1.5% to end a good week. Cash reserves still garner a large 48% portion of the portfolio.
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After the market close there were no RSI signals. Have a great weekend.
Tense market falls ahead of Bernanke speech – Bought ZROZ August 25, 2011
Posted by Marlowe Cassetti in ZROZ.add a comment
U.S. stocks fell on Thursday as investors raised cash ahead of a critical speech from Fed Chairman Ben Bernanke, hoping he will give them a clearer picture of the Fed’s plans for the struggling economy.
Several negatives contributed to the market’s weakness after three days of gains. Jitters over a sharp drop in German stocks and a report showing continued U.S. job market weakness helped fuel the selling.
The Dow Jones industrial average .DJI dropped 170.89 points, or 1.51 percent, to 11,149.82. The Standard & Poor’s 500 Index .SPX fell 18.33 points, or 1.56 percent, to 1,159.27. The Nasdaq Composite Index .IXIC lost 48.06 points, or 1.95 percent, to 2,419.63. (commentary & photo courtesy of Reuters)
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I took the morning off to play golf in Florence, CO with my friends and I got to a computer in time to place an order to buy the required number of shares of PIMCO 25+ Yr Zero Cpn U.S. Trsy Idx ETF (ZROZ). When the market closed I saw that the RSI portfolio had chalked up a small, but nicely appreciated gain. Appreciated because of the big drop in the markets today. The gains were mostly from the positions in silver and base metal ETFs.
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After the market closed there were no new RSI signals. I’ll catch you later.
Wall Street gains as gold rush ends; Apple’s CEO quits – RSI picks PIMCO Zeros August 24, 2011
Posted by Marlowe Cassetti in ZROZ.add a comment
Stocks rallied for a second day on Wednesday as investors bought beaten-down financial shares and unloaded gold, but tech stocks could fall on Thursday after late news about Apple’s Steve Jobs stepping down as CEO.
During the regular session, the stock market swung back and forth as investors anticipated a key speech from Federal Reserve Chairman Ben Bernanke on Friday. There had been hope the Fed chief would hint of stimulus to aid the struggling economy, but a more likely outcome is for gradual measures.
The Dow Jones industrial average shot up 143.95 points, or 1.29 percent, to end at 11,320.71. The Standard & Poor’s 500 Index jumped 15.25 points, or 1.31 percent, to finish at 1,177.60. The Nasdaq Composite Index gained 21.63 points, or 0.88 percent, to close at 2,467.69. (commentary & photo courtesy of Reuters)
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After the close RSI picked the following:
- Buy 184 shares PIMCO 25+ Yr Zero Coupon U.S. Treasury Index ETF (ZROZ); Volatility = 7.8%
There are some major pros & cons with this pick. If you are not familiar with zero coupon bonds I suggest you look it up. This ETF trades, on average, about 40k shares per day so it is thinly traded. It took a huge –5.05% hit today as the equity markets pulled funds out of the bond market. See graph below of the accumulation/distribution (light blue line). It has a yield of 4.33% and pays out quarterly. Finally, PIMCO is an outstanding bond investment house. I will be taking a close look at this selection, ZROZ.
Catch you later.
Hopes for another Fed rescue drive 3 percent rally on Wall St - August 23, 2011
Posted by Marlowe Cassetti in Blogroll.add a comment
Stocks shot 3 percent higher on Tuesday on speculation Federal Reserve Chairman Ben Bernanke this week would signal new help for the economy, giving investors hope a four-week rout was nearing an end.
Weak data in housing and regional factory activity triggered the latest round of bets that Bernanke will act, even though the Fed’s options appear limited. Bernanke speaks to a central bank conference on Friday in Jackson Hole, Wyoming.
The Dow Jones industrial average was up 322.11 points, or 2.97 percent, at 11,176.76. The Standard & Poor’s 500 Index was up 38.53 points, or 3.43 percent, at 1,162.35. The Nasdaq Composite Index was up 100.68 points, or 4.29 percent, at 2,446.06. commentary & photo courtesy of Reuters)
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The RSI portfolio had a meager gain today, not like the gangbuster day seen in the equity markets. As I stated before the portfolio is mostly in cash and commodities, so today’s performance is not unexpected.
No RSI signals today … catch you later.
Bargain hunters tiptoe back but remain cautious – Bought PCY August 22, 2011
Posted by Marlowe Cassetti in PCY.add a comment
U.S. stocks ended slightly higher on Monday after four weeks of losses as investors hesitated to take big risks without a catalyst for buying.
The market was led by large-cap techs and industrials until late in the session when a rally faded.
Speculation is widespread in financial markets that Federal Reserve Chairman Ben Bernanke will use his Friday speech at a central banker conference in Jackson Hole, Wyoming, to signal a new monetary offensive to support a faltering U.S. economy.
The Dow Jones industrial average .DJI was up 36.85 points, or 0.34 percent, at 10,854.50. The Standard & Poor’s 500 Index .SPX was up 0.29 point, or 0.03 percent, at 1,123.82. The Nasdaq Composite Index .IXIC was up 3.54 points, or 0.15 percent, at 2,345.38. (commentary & photo courtesy of Reuters)
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The RSI portfolio had a fair day, up inline with the markets. I have been monitoring PowerShares Emerging Markets Sovereign Debt (PCY) since RSI’s buy recommendation on August 17th. I liked what I saw and dipped my toe in with a 1.0R risk position. I also liked its 5.5% annual yield and its monthly payment. If I need to park some more of the cash reserves I will consider other good yielding funds.
There were no RSI buy signals today. Catch you later.
Wall Street sinks for fourth straight week – RSI does great today August 19, 2011
Posted by Marlowe Cassetti in Blogroll.add a comment
Wall Street ended a fourth week of losses on a down note on Friday as most buyers left the market before the weekend on growing fears of another U.S. recession and destabilization in Europe’s financial system.
Investors already reeling from big losses in growth stocks were thumped by a dismal outlook from Hewlett-Packard, which dropped nearly 20 percent, its worst day since the stock-market crash of 1987.
Worries that the United States and the global economy may be headed for another recession have unnerved investors in recent weeks. Thursday marked the sixth time in the past two weeks that the S&P 500 has moved 4 percent or more.
The Dow Jones industrial average fell 172.93 points, or 1.57 percent, to end at 10,817.65. The Standard & Poor’s 500 Index dropped 17.12 points, or 1.50 percent, to 1,123.53. The Nasdaq Composite Index slid 38.59 points, or 1.62 percent, to close at 2,341.84. (commentary & photo courtesy of Reuters)
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Despite the market’s poor performance today, the RSI portfolio had an outstanding day led by 5% plus gains in silver and sugar funds. The equity (non cash) portion of the portfolio turned in a 2.86% gain. This demonstrates the value of investing in ETFs and ETNs since they cut across a vast landscape of investment vehicles such as commodities. Using this strategy, one doesn’t have to focus in on just stock equities. There is a whole world of investing in ETFs.
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No RSI buy picks today. Have a great weekend.
Markets close with biggest drop since U.S. downgrade August 18, 2011
Posted by Marlowe Cassetti in Blogroll.add a comment
Oil closed down 6 percent on Thursday, tumbling with other commodities that reflect investors’ risk appetite as renewed economic fears triggered the biggest losses since the August 5 U.S. credit downgrade.
Snapping three days of relative calm, global stock markets tumbled as weak indicators for U.S. regional factory activity and business combined with fresh fears over the health of euro zone banks.
Gold hit record highs, while other so-called safe havens such as the Swiss franc, U.S. dollar and bonds rallied.
The Reuters-Jefferies CRB .CRB, a global benchmark for commodities, finished down 2.3 percent. It was the index’s biggest daily decline since August 8, when energy, metals and agricultural markets slumped in the aftermath of Standard & Poor’s downgrade of the U.S. triple-A credit rating.
The Dow Jones industrial average fell 419.63 points, or 3.68 percent, to 10,990.58, while the Standard & Poor’s 500 Index declined 53.24 points, or 4.46 percent, to 1,140.65, and the Nasdaq Composite Index dropped 131.05 points, or 5.22 percent, to 2,380.43. (commentary & photo courtesy of Reuters)
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The RSI portfolio took a minor hit today as the commodity holdings slumped but silver was up almost 1%. We are holding a very high 73% cash reserve position … most fortunately.
No RSI signals today. Catch you later.
Tech shares fall on weakness, NetApp down late – RSI picks PCY August 17, 2011
Posted by Marlowe Cassetti in PCY, SGG.add a comment
Tech shares fell on Wednesday after Dell’s disappointing sales outlook fanned worries weak economic growth will hurt earnings in the third quarter.
The Dow and S&P indices ended little changed in an up-and-down session where investors sold growth sectors in favor of defensive shares like telecoms and utilities.
The Dow Jones industrial average .DJI was up 4.28 points, or 0.04 percent, at 11,410.21. The Standard & Poor’s 500 Index .SPX was up 1.12 points, or 0.09 percent, at 1,193.88. The Nasdaq Composite Index .IXIC was down 11.97 points, or 0.47 percent, at 2,511.48. (commentary & photo courtesy of Reuters)
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While the market was flat today, the RSI portfolio made a nice gain powered by a 5.3% gain in our sugar fund holding, SGG. After the market close, RSI generated a new buy signal:
- Buy PowerShares Emerging Mkts Sovereign Debt (PCY); set stop loss $0.57 below entry price
This fund is not primarily for capital appreciation but for income. PCY generates 5.52% yield and it pays monthly. This might be a good holding position to generate some income. It holds government bonds in emerging markets. The downside is that the foreign debt markets are a bit scary, so this fund might not be good for the faint of heart.
Catch you later.
