Daily Investment Interpretations

April 23, 2010

2010-4-23:  Once again, the indices have moved higher, establishing new 2009-2010 highs, perhaps because of upbeat housing sales in March:.New-home sales on march The NASDAQ Composite jumped 69.99 points, (0.63%) to close at 2,530.15, the Dow eased up 9.37 points (0.08%), to 11,204.28, and the S&P 500 tacked on 8.61 points (0.71%) to close at 1,217.28. Oil hit $85.12 a barrel, while Gold climbed to $1,154. The VIX again increased 0.15 to 16.62.
    The indices are pretty well holding to their trend lines. At some point, an inevitable pullback will have to occur: "Sell in May and go away"? In the meantime, the markets are continuing to climb in stealth mode.
    In the meantime, the Chinese index ETF, FXI (See the chart below), has dropped to its 25-day trend line, making Chinese stocks better buys than usual. I like (and own) the January, 2012, FXI $25 call, giving me roughly 2:1 leverage on the FXI China index fund.