Stocks suffer worst week in 2 months on Europe woes – RSI weathers the week quite well November 25, 2011
Posted by Marlowe Cassetti in PPH.trackback
Stocks posted seven straight sessions of losses on Friday, ending the worst week in two months, as the lack of a credible solution to Europe’s debt crisis kept investors away from risky assets.
Wall Street traded higher for most of the abbreviated session on hopes that "Black Friday," the traditional start of the U.S. holiday shopping season, would support major retailers. But gains were quickly offset by headlines out of Europe that further dented market sentiment. With less than 20 minutes before the close, all three stock indexes had turned negative.
The Dow Jones industrial average .DJI slipped 25.77 points, or 0.23 percent, to 11,231.78 at the close. The Standard & Poor’s 500 Index .SPX declined 3.12 points, or 0.27 percent, to 1,158.67. The Nasdaq Composite Index .IXIC shed 18.57 points, or 0.75 percent, to 2,441.51.
For the week, the S&P 500 fell 4.7 percent, giving back almost two-thirds of its gains in October, the market’s best month in 20 years. The Dow was off 4.8 percent for the week and the Nasdaq fell 5.1 percent. (commentary & photo courtesy of Reuters)
******************************************************************
On balance, the RSI portfolio had a good week. Because of its defensive posture, the bond positions offset the more market correlated positions. The position in PPH was closed out on the 24th when it approached its stops. Otherwise, its total portfolio was pretty close to flat for the week. A far cry from the almost 5% market selloff. Of the six RSI holdings, four are in the black and two are red. By far the biggest winner is ZROZ with a gain of 26.8% or +4.2R.
******************************************************************
The portfolio cash reserves have grown to almost 50%. For the week ahead I will be monitoring most of the “short the market” RTFs to back off their parabolic rise for a possible entry point. Likewise for some of the energy funds. Finally I’m monitoring some of the gold funds for a confirmation of a return their previous strong uptrend.
Have a great weekend.
Comments»
No comments yet — be the first.