mackinac ripping: Global stocks, oil jump on U.S. job gains, Europe optimism ? RSI likes IWF, IYR & LQD

Tuesday, August 7, 2012

Global stocks, oil jump on U.S. job gains, Europe optimism ? RSI likes IWF, IYR & LQD

Posted by Marlowe Cassetti in IWF, IYR, LQD.
trackback

A man walks past an information bilboard showing the evolution of the FTSE 100 index at the Swiss exchange in Zurich, August 9, 2011. REUTERS-Christian Hartmann World stocks rallied, U.S. oil jumped nearly 5 percent and the euro surged on Friday on news U.S. employers increased hiring in July by the most in five months and on renewed optimism that Europe was closer to action on its debt crisis.

Investors took a second look at Thursday?s statement by European Central Bank President Mario Draghi and concluded that help was on the way, even though it would take more time than many hoped.

The MSCI world equity index was last up 1.9 percent. European shares? ended 2.5 percent higher.

On Wall Street, the S&P 500 rallied to its highest level since early May. The Dow Jones industrial average was up 217.29 points, or 1.69 percent, at 13,096.17. The Standard & Poor?s 500 Index was up 25.99 points, or 1.90 percent, at 1,390.99. The Nasdaq Composite Index was up 58.13 points, or 2.00 percent, at 2,967.90.

The Federal Reserve on Wednesday sent a stronger signal that a new round of major support could be on the way if the recovery did not pick up. (commentary & photo courtesy of Reuters)

******************************************************************

The RSI portfolio continues to mark time as it waits to see if its ?risk off? continues to be viable. RSI does have a couple of of funds that look favorable for buy candidates. They are the following:

IWF follows large cap growth stocks. It is demonstrating good strength and bears watching.

IYR follows real estate stocks and it continues its relentless uptrend. I have no problem with buying it now. It has a 3.47% yield which isn?t too shabby in today?s environment.

Finally we have LQD, a corporate bond fund. It sports a great 4.13% yield and it has been continuing its upward path. It has an advantage of being helped by potential corporate growth.

? I hope you have had a good weekend. Catch you next week.