The Dow industrials closed above 11,000 for the first time in almost 19 months on Monday as expectations of solid first-quarter earnings spurred buying in financial, energy and industrial sectors.
Even so, some investors said stock prices already reflect lofty expectations for first-quarter results, with both the Dow and the S&P 500 near 19-month highs.
"People fully expect that the earnings season is going to be very, very good, so people are trying to get in front of that," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco.
The Dow closed above 11,000 after briefly topping that level on Friday for the first time since September 2008. The S&P 500, which is up 7.2 percent since the start of the year, rose to within 1 point of the 1,200 level, a critical resistance level.
News of an aid plan for Greece calmed worries about sovereign debt risk, helping sentiment on Wall Street.(market commentary & photo courtesy of Reuters)
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CNBC has an article the Top 10 Investor Traps and it lists at number 10 Leveraged Exchange-Traded Funds (ETFs). It concludes Given their volatility, these funds typically are not suitable for most retail investors. Any observer of this blog knows of the several leveraged ETFs that RSI has recommended. All I can say is that I agree they are not the best funds for long term investors and should be relegated to shorter term trading. I certainly understand if someone avoids these RSI recommendations, however the objective evidence argues otherwise. Including short funds enhances the performance over the portfolio of long only funds. A further enhancement occurs when the single leveraged, both long and short. are added to the mix. Likewise the double or ultra funds add to performance, but the addition of triple leveraged funds hurts performance. Believe me, I don't like the leveraged funds, but I have to rely on evidence based analysis and swallow my apprehension and go with RSI's picks.
No RSI picks today .... catch you later.
Reference: http://rocketscienceinvesting.blogspot.com/2010/04/dow-tops-11000-on-profit-bets-top-10.html
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