Daily Investment Interpretations

October 18, 2010

 

2010-10-18 (Monday Night):   TopStock Portfolios issued a Sell! signal this morning, so what have the markets done for the rest of the day? That's right! They've ascended nicely to new highs: Stocks target April highs, Don't bet against bulls this week. The NASDAQ Composite climbed 11.89 points (0.48%) to 2,480.66  The Dow wafted up 80.91 points (0.73%) to close at 11,141.69, and the S&P 500 accumulated 8.52 points (0.2%) to end at 1,176,19. Oil closed at  $82.92 a barrel, while Gold ended at $1,369. The VIX rose 0.06 to 19.09. Why did the VIX rise slightly in the face of all this good news? Don't ask me. Go ask your Dad.
    No further information about why my investment advisory service sent out a "sell" recommendation.
    Stock market futures are down tonight.

2010-10-18
(Monday Noon Update):
  Sell!
    My investment advisory service has just issued a
"sell!" recommendation. There's nothing urgent about this... only the service's perception that downside risk has risen sufficiently that it would probably be advisable to go to cash before a downside actually presents itself. It's entirely plausible that the markets might go higher from here, but there's a good chance of at least a short-term pullback.
     

       Building real estate ETF's  I've included this because real estate is an area that will eventually rebound, although when isn't just clear. The article observes that REIT ETF, RWR, has gained 21.5% so far this year. It's also at the level where prior rallies have stalled. Below is the automatically updated, two-year price chart for this SPDR Dow Jones REIT. It's continuing to do well in spite of concerns about commercial real estate.
  
       How to play rising interest rates  Suggests cash.      
       Is it time to worry about the dollar?  The article concludes that it's not a major problem yet.