It’s Looking Up
Okay,
the markets treaded lower today and the markets are sluggish to say
the least (as we can see by the volume being traded), but
at least they did a 180 to close higher. Call me an optimist, but like
I said before, the economy is improving. Today’s CPI numbers,
combined with the deceleration in energy prices all point to easing of
inflationary pressure, and with housing
starts still strong and a better than expected Jobless claims
number…things are looking up! Why you ask?
Will
this give the Federal Reserve Board the leeway to be accommodating to
the economy, even if the dollar continues to weaken?
The beauty is the U.S. is still the best investment for foreign money.
Where would foreign investors put there money now anyway? Japan and
Argentina?
Resmed (RMD)
which I mentioned in this piece a few columns ago is creeping up the
right side of its base.
As is Downey Financial (DSL).
Turning to the Exchange
Traded Funds, the WEBS-Malaysia Benchmark (EWM)
moved higher 2.3%
The Semiconductor HOLDRs
(SMH)
turned around in the last hour of trading to close higher 1.9% hitting
some resistance at it 50 day moving average.
Also moving higher was the
Ishares Taiwan Index (EWT)
as it broke above its 50 day moving average. Continue to monitor
Taiwan as it looks like it is gaining some momentum.
The WEBS-Korea Benchmark (EWY)
closed up 1.4% as it gapped higher and trades above its 50 and 20 day
moving averages. The fund looks poised to test its pivot point of its
sloppy cup with handle.
Losing ground was the Morgan
Stanley Internet Street Tracks (MII)
which fell 6.4%.
The WEBS-Mexico (EWW)
slid 2.6% and the Oil Services Holdrs (OIH)
lost 1.9%
Remember that all securities
are risky. In any trade, you should always reduce your risk by
adjusting position size and placing open protective stops where
you will sell your long or cover your short in case the market turns
against you. For an introduction to combining price stops with
position sizing, see Loren’s lesson, Risky
Business.
Greg