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Wall Street gains as Fed minutes boost stimulus bets – Bought VXZ August 30, 2011

Posted by Marlowe Cassetti in VXZ.
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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.

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