Wall Street ends worst quarter since 2008 meltdown – ECRI calls recession; Bought VXZ, TLT & MYY; RSI portfolio soars 1.54% today September 30, 2011
Posted by Marlowe Cassetti in MYY, TLT, VXZ.trackback
Stocks ended their worst quarter since the depths of the 2008 credit crisis, crippled by Europe’s debt debacle, a U.S. credit downgrade and a sputtering global economy.
A steep slide on Friday closed out a fifth month of losses as weak economic data from China sparked fears of a global economic slow
down while investment bank Morgan Stanley plummeted on concerns about its exposure to European banks.
The S&P 500 index has lost more than 14 percent this quarter and over 7 percent in September alone. As of Thursday, Wall Street’s deep downturn in the third quarter wiped out $2.2 trillion of the Wiltshire 5000 index — the broadest measure of U.S. stocks.
The Dow Jones industrial average dropped 240.60 points, or 2.16 percent, to 10,913.38. The Standard & Poor’s 500 Index fell 28.98 points, or 2.50 percent, to 1,131.42. The Nasdaq Composite Index lost 65.36 points, or 2.63 percent, to 2,415.40.
Wall Street’s "fear gauge," the CBOE volatility index, or VIX, rose more than 10 percent to 42.96, its highest close since mid-August and indicating investors expect more volatility ahead. (commentary & photo courtesy of Reuters)
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Today the Economic Cycle Research Institute (ECRI) declared that the US has slipped back into another recession. ECRI has a very good record in calling recessions. This call motivated me to add to the VXZ position and open a new position in MYY. Both of these are RSI’s recent picks. Additionally, I added TLT to the portfolio as a defensive position. These new acquisitions dropped the cash reserves to 21%. At the end of the day the RSI portfolio soared 1.54%. Seven of the eight positions had 2.5 to 5% gains today. A happy ending to a dismal market week.
RSI had no new picks today. Have a happy weekend. See you at Apple Days in Penrose on Saturday,
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