Stocks ended flat on Tuesday after fluctuating between small gains and losses in a light-volume session, as investors took a breather following a 5 percent rally last week.
The S&P 500 turned positive for the year on Friday, with improving economic data boosting equities. Gains were amplified by better-than-expected data on consumer confidence, which hit an eight-month high in December, as Americans grew more upbeat about the labor market and their financial situations.
But after a strong rally and with trading volume light, investors were reluctant to draw many conclusions from the move.
The Dow Jones industrial average .DJI dipped 2.65 points, or 0.02 percent, to 12,291.35 at the close. But the Standard & Poor's 500 Index .SPX inched up 0.10 of a point, or 0.01 percent, to close at 1,265.43. The Nasdaq Composite Index .IXIC added 6.56 points, or 0.25 percent, to end at 2,625.20. (commentary & photo courtesy of Reuters)
Today RSI made the following buy recommendations:
- Buy 1666 shares of First Trust Value Line Dividend Index (FVD); Yield = 2.62%; Volatility = 4.1%
- Buy 394 shares of iShares Dow Jones US Real Estate (IYR); Yield = 3.95%; Volatility = 5.8%
- Buy 1040 shares of Utilities Select Sector SPDR (XLU); yield = 3.84% ; Volatility = 3.7%
Let’s look at these three picks.
Although FVD is a lower volatility fund, it is on a strong recovery. I like this chart and I like the yield too. It is a good risk off trade and I will buy it for the portfolio.
I like IYR because it diversifies the RSI portfolio with real estate exposure. If there is an economic recovery then real estate should benefit. Plus it is exhibiting good chart action and it has a great yield too.
I like this low volatility fund, XLU, because it too adds portfolio diversification by representing the utilities sector and its yield is good too. It may be trading at the high end of its ascending channel, but I don’t see a problem with taking a position in the fund.
Well that is all for tonight. Happy hunting.
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