BOUGHT Ultra Dow30 ProShares (DDM) and Western Asset Managed High Income Fund Inc. (MHY)

Major stock indexes rose Monday as momentum shifted in favor of the reappointment of Federal Reserve Chairman Ben Bernanke.

Investors want Bernanke to remain in control of the Fed and maintain his low interest rate policy. The prospect that he might not be confirmed in the Senate for another term rattled markets last week.

Key senators including Democrats Max Baucus of Montana and Dianne Feinstein of California said Monday they would support Bernanke's confirmation, and presidential adviser David Axelrod said Bernanke has enough votes to be confirmed. (commentary & photo courtesy of AP)

Let me explain the two headline picks. The first, DDN came up during my testing of the new, improved trend following module that isn’t ready for prime time. I have a lot more testing and verification before making any recommendations. However when I saw it I liked the contrarian nature of this pick and I bought some this morning.

As you can see DDM has taken quite a hit, but somehow RSI has an expectation that this fund will recover. Remember it is leveraged 2:1 to the DJIA. My buy was filled at $41.20 and I immediately entered a stop loss order at $38.41. Let’s see if this drop is reversed and my new module (still under development) is viable.

The other fund isn’t an ETF but rather a CEF that I selected as a “holding fund”. There are a number of reasons I selected it, mainly its low price volatility and secondly that it pays a monthly dividend that yields 9.93% annualized. For me it is an ideal fund to park money that otherwise would languish in a money market fund. See chart below.

Well, there you have it for today. RSI made no further recommendations after the market closed today. Catch you tomorrow.