Modest Up Day - RSI Still Likes Energy & Materials
Posted on May 06, 2008 at 20:52 PM EDT
Today in the market, Tuesday May 6, 2008: After spending most of the day in the red, the stock market came back and ended modestly up. It appears that the market is climbing a wall of worry. Certainly a sign of a bottoming process. RSI’s Themes: RSI's ETF/CEF picks reflect a strong interest in the energy and materials sectors. The many stock picks reflect the energy and materials plays. And no ETF/CEF falling knife candidates....a good sign?? ETF/CEF Medium Volatility: IGE - Natural Resources iShares S&P GSSI Index Fund IXC - iShares S&P Global Energy Sector Index Fund MXI - iShares S&P Global Materials Sector Index Fund XES - SPDR S&P Oil & Gas Equipment & Services Index As the chart reveals, all these funds have made sizeable gains since the first of this year. RSI expects continued good performance from these funds and these sectors. Stocks Medium Volatility: ARG - Airgas, Inc. BLK - Blackrock, Inc. BTI - British American Tobacco Industries, p.l.c. ECA - EnCana Corp. FMC - FMC Corp. IMO - Imperial Oil Ltd. KOP - Koppers Holdings Inc. LUK - Leucadia National Corp. MANT - ManTech Intl Corp. MT - ArcelorMittal SA NXY - Nexen Inc. SII - Smith Intl, Inc. SJT - San Juan Basin Royalty Trust SSL - Sasol Ltd. STR - Questar Corp. SU - Suncor Energy, Inc. VCP - Votorantim Cel E Papel Or Stocks High Volatility: CALM - Cal-Maine Foods, Inc. New Stocks: Airgas, Inc. and its subsidiaries distribute industrial, medical, and specialty gases, and welding, safety, and related products in the United States. BlackRock, Inc. is a publicly owned investment manager. The firm also provides risk management and advisory services. EnCana Corporation engages in the exploration, production, and marketing of natural gas, crude oil, and natural gas liquids. EnCana Corporation was founded in 1971 and is based in Calgary, Canada. This is a huge list of stocks. A couple of words of note...ARG was up big today on very positive earnings. Don't chase it. Please do your homework on all the names mentioned on this blog. For full disclosure I own a position in SJT. Catch a Falling Knife: none The Way Ahead Portfolio has been going quite well and there is still an opening for one more stock. So I will purchase the equivalent of $8,877.16 of MXI - iShares S&P Global Materials Sector Index Fund for the portfolio at the open. This all ETF/CEF portfolio is only down 2% since its inception on Oct. 1st 2007. Not too shabby. p.s. - I'm feeling much better and my high speed Internet is back in operation, which is helping my spirits too.