Stocks advanced on Tuesday, pushing the S&P 500 to its highest since early August, but sharply pared gains late in the session as Citigroup's steep drop in profit gave investors a reason to unload bank shares.
The financial sector, which has outperformed the broader market so far this year, took a hit on investors' disappointment with Citigroup Inc's earnings.
The Dow Jones industrial average .DJI rose 60.01 points, or 0.48 percent, to 12,482.07 at the close. The Standard & Poor's 500 Index .SPX added 4.58 points, or 0.36 percent, to 1,293.67. The Nasdaq Composite Index .IXIC gained 17.41 points, or 0.64 percent, to 2,728.08.
The benchmark S&P 500 briefly moved above 1,300 on an intraday basis for the first time since August 1. Analysts said a substantial move past that resistance point could trigger more buying.
Volume totaled 6.8 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, just above the daily average of 6.68 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 3 to 2, while on the Nasdaq, advancers beat decliners by about 13 to 12. (commentary & photo courtesy of Reuters)
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Today I purchased the requisite shares of SPDR S&P Regional Banking ETF (KRE). It was behaving well but dropped slightly after the Citi news hit the street. That’s okay since I was looking to add financials to the portfolio mix.
After the bell, RSI issued another two buy signals:
- Buy 165 shares Vanguard Total Stock Market ETF (VTI); Stop = -$6.03 Target = +$18.10 Volatility = 3.64%
- Buy 109 shares SPDR Series Trust SPDR S&P Bio (XBI); Stop = -$9.11 Target = +$27.34 Volatility = 4.92%
With VTI, you are buying the entire US stock market. This is a highly diversified holding and pays a 1.92% yield. Technically it is doing quite well.
XBI is also doing well, almost too well. I would wait until you see some price pullback and buy on the dip.
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