Bull Rally

We are at why the heck are you gonna sell now territory in the Dow Jones and S&P 500. In the last blog I mentioned that the financial sector is near its bottom and that we are waiting for the RSI break out; we are still waiting for it, but I went in earlier. Also, the best thing to do at this time is to get back in SPY and/or DIA and hold it, until we make new highs.

I highly doubt that we are going into a recession because we just came out of one seven years ago. The only thing we had last year is that we make all time highs, and then some backing and filling.

I am still holding AT&T (T), I’ve never sold it despite it went to $37, and now it is back in the $41-$42 area. Our target is $46.67!

I also took a position in PEY (Powershares High yield Dividend Achievers). Most of their portfolio is composed of the financials, but they are also diversified in many other sectors as well. What I like about it is that they have companies who consistently increase their dividend every year and are stable. This fund is weighted according to their dividend yield, not by market capitalization. They pay a monthly dividend of about a 9%!

It is much better than putting it in the bank, which usually pays only 4%. It is concentrated 53% in the financial sector and about 32% in the utilities sector. Those sectors will dramatically affect PEY, which is why I am keeping an eye on the financials right now; specifically the Weekly RSI on XLF, because if it rallies about the Weekly RSI trend line, then we will be on good ground.