Bare-bones EU debt deal news enough for buyers – Bought BAB October 26, 2011
Posted by Marlowe Cassetti in BAB.trackback
Stocks rose on Wednesday as the slow progress from European leaders in resolving their debt crisis was enough to satisfy investors, even if early reports from an EU summit were short on detail.
The euro zone aims to leverage its 440 billion euro bailout fund "several fold," but details are not expected until November, according to a draft statement obtained by Reuters.
Stocks increased gains in the afternoon as the news emerged, continuing the market’s recent rally. The S&P has risen 9.5 percent for the month on growing optimism for a deal to address sovereign debt and bank balance sheets in Europe.
The Dow Jones industrial average gained 162.42 points, or 1.39 percent, to 11,869.04. The Standard & Poor’s 500 Index .SPX.INX rose 12.94 points, or 1.05 percent, to 1,241.99. The Nasdaq Composite Index .IXIC added 12.25 points, or 0.46 percent, to 2,650.67. (commentary & photo courtesy of Reuters)
******************************************************************
Sorry for my absence from this blog for a few days. RSI has been giving some indications of investing in a variety of bond and silver funds, some of which I have mentioned in the past few blogs. I have been narrowing the choices down by virtue of using long-term trend criteria. The silver funds appear to be in a downtrend and won’t be considered until they demonstrate a trend change. Bond funds, on the other hand, are exhibiting a good uptrend movement. Consequently, I purchased a position in PowerShares Build America Bond (BAB). Besides the uptrend, BAB pays a 5.17% yield. Not too shabby in this low interest rate enviroment.
As the chart illustrates, BAB has fallen to its lower trendline before recovering.
A weekly chart shows its long term trend. As long as this trend remains in place, I will keep it in the portfolio.
Catch you later.
Comments»
No comments yet — be the first.