Wall St down, MF Global falls victim to Europe – RSI picks Indonesia & regional banks October 31, 2011
Posted by Marlowe Cassetti in IDX, KRE.trackback
Wall Street closed its best month in 20 years on a down note on Monday as the failure of trading firm MF Global Holdings Ltd and new worries about Europe’s debt crisis hammered financial shares.
In a sign that Europe’s woes were far from over, Italian and Spanish bond yields soared, prompting the European Central Bank to buy the debt, while shares of European banks came under heavy selling pressure.
MF Global Holdings Ltd, the futures broker that made big bets on European sovereign debt, filed for Chapter 11 bankruptcy protection, making it the biggest U.S. casualty of the euro zone crisis. Trading in MF Global shares was halted.
The Dow Jones industrial average dropped 276.10 points, or 2.26 percent, to 11,955.01. The Standard & Poor’s 500 Index fell 31.79 points, or 2.47 percent, to 1,253.30. The Nasdaq Composite Index lost 52.74 points, or 1.93 percent, to 2,684.41. (commentary & photo courtesy of Reuters)
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The RSI portfolio had a great day by virtue of excellent performance in its two bond holdings ZROZ and BAB, up 6.84% and 1.95% respectively. After the close RSI made two new recommendations:
- Buy 450 shares Market Vectors Indonesia Index ETF (IDX); Volatility = 9.4%
- Buy 555 shares SPDR KBW Regional Banking (KRE); Volatility = 9.6%
FYI, both of these picks were generated by our "dip buying" module. So let’s take a look at the charts.
Both charts show that both funds have been in sharp uptrends and have dipped a bit in the last two days. This piqued the interest of RSI’s dip module.
I have been taking a greater interest in the long term view of any new RSI picks. I’m not very impressed with either of these long term prospects. If that changes, I might give them a more serious consideration.
Catch you later. Happy Halloween to all you goblins.
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