Stocks dipped on Monday as lawmakers remained in a standoff over raising the debt ceiling to avoid default, but investors were convinced a compromise will be reached before next week's critical deadline.
Trading volume, however, was light even for a seasonally quiet period, suggesting investors were holding to the sidelines. In another sign of negative sentiment, declining stocks far outpaced advancers despite the day's moderate declines.
The Dow Jones industrial average .DJI was down 88.36 points, or 0.70 percent, at 12,592.80. The Standard & Poor's 500 Index .SPX was down 7.59 points, or 0.56 percent, at 1,337.43. The Nasdaq Composite Index .IXIC was down 16.03 points, or 0.56 percent, at 2,842.80. (commentary & photo courtesy of Reuters)
The RSI portfolio was down about the same percentage as the market averages. I expect there will be a debt resolution in the coming days, no too soon for most investors.
This weekend I had an opportunity to review some of RSI’s past recommendations. AGQ looked appealing from several technical prospectives and I liked what I saw. It also didn’t hurt that an independent source I follow highlighted this ETF. Earlier this year RSI picked AGQ, we made a quick +2.0R profit and then it picked it again with the same results. Looking at a chart shows that after a sharp selloff in late April, the downtrend was reversed around the first of this month. The parameters are:
This month marks the one year holding period for iShares MSCI Taiwan Index (EWT). The holding is sitting at a +0.8R profit. I was toying with the idea of selling it, but I guess I should stick with it. It might not be dead money. Here is a one year chart for EWT.
There were no new RSI picks after the closing bell. I’ll catch you later.