Monday was yet another down day for Wall Street as stocks started the week in red territory given the anticipation surrounding the debt-ceiling negotiations. Even after lawmakers in Washington passed the debt-deal on Tuesday, equities still tanked in afternoon trading as investors went into a selling-frenzy. Persistent uncertainty and broad-based weakness continue to pave the way higher for gold as the precious metal once again surged to new all-time highs this week, hitting $1,675 an ounce on Wednesday morning. Crude oil on the other hand has been very weak these past few weeks, managing to sell off Monday afternoon and close just above $92 a barrel on Wednesday. These losses in crude were largely thanks to ongoing weakness in economic data reports as worries over demand continue to build in the global economy.
This week’s recommendations have posted mixed performance results so far given the persistent weakness in equity markets and general feelings of uncertainty still plaguing Wall Street.
Checking In: Trading Ideas
This week, our trading ideas included a short position in a domestic sector fund and a long position in an emerging market ETF. We also felt it was wise to long an international treasury bond fund. Although U.S. lawmakers have avoided a default, investors are still very clearly shaken by our nation’s towering deficit as selling pressures took over even after the debt-deal was signed.
Trading Idea #1: Short IHE
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