U.S. stocks off for fifth day; euro up on IMF move – RSI flashes a buy on PLW November 22, 2011
Posted by Marlowe Cassetti in PLW.trackback
U.S. stocks fell for a fifth straight day on Tuesday, extending losses from across Europe, after worries over U.S. economic growth, while the euro rose on a new IMF initiative to contain Europe’s debt crisis.
The U.S. government said the U.S. economy grew at a 2 percent annual rate in the third quarter, below the initial estimate of a 2.5 percent growth rate, and below expectations for a 2.5 percent reading.
The Dow Jones industrial average .DJI fell 53.59 points, or 0.46 percent, to end at 11,493.72. The Standard & Poor’s 500 Index .SPX slipped 4.94 points, or 0.41 percent, to finish at 1,188.04. The Nasdaq Composite Index .IXIC dipped 1.86 points, or 0.07 percent, to close at 2,521.28. (commentary & photo courtesy of Reuters)
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Despite the down market, the RSI portfolio put in a good day today. After the close RSI generated a new buy signal:
- Buy 524 shares PowerShares 1-30 Laddered Treasury (PLW); Stop $30.57
In today’s market environment, this fund looks like a good move. It is an a good short term and long term uptrend. It pays out a +3.89% yield, which is nothing to sneeze at. My only reservation is that it is a bit thinly traded with an average daily volume at only 50,000 shares.
I have to take a close look at PLW. Already three of the seven portfolio holdings are bond funds, so I’m cautious about loading up on bonds. However, the stock market futures are down big this evening, signaling a good chance that this week will be a bad week. Historically, Thanksgiving week is a strong week.
Catch you later.
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