S&P 500 index poised to extend streak – RSI picks Silver October 14, 2011
Posted by Marlowe Cassetti in DBS, SIVR.trackback
With one-third of the Dow components and crowd favorite, Apple, reporting results next week, U.S. stocks are setting the stage for another week of gains.
After the steepest two-week rally in more than two years, the S&P 500 is at the top end of its range for the past two months.
The benchmark closed Friday above 1,220 for the first time since early August, and bets against the recent rally could start to pile up.
For the week, the Dow Jones industrial average .DJI gained 4.9 percent, the S&P 500 .SPX added 6 percent, and the Nasdaq Composite .IXIC rose 7.6 percent. (commentary & photo courtesy of Reuters)
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The RSI portfolio took another hit today as the VXZ fund was sold. This leaves only ZROZ in the portfolio. After the market close RSI made the following buy recommendations:
- Buy 125 shares PowerShares DB Silver (DBS); Volatility = 11.8%
- Buy 221 shares ETFS Physical Silver Shares (SIVR); Volatility = 11.8%
These two funds are almost identical since they both track the physical metal. SIVR has an average volume over 5 times that of DBS. All other things being equal, go with SIVR. The last chart is the longer term (weekly) chart. It is concerning that since the end of May 2011, it is making lower highs and lower lows. This price action suggests a continuation of the downtrend or a sideways movement that was started in May.
Have a great weekend and enjoy the lovely fall weather.
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