For Wednesday, Jul 20, the market forecast is for growth

We recommend any leveraged ETF that grows with the US market.

Here are some options:

2x Leveraged ETFs


Russell 2000

S&P 500







3x Leveraged ETFs


Russell 2000

S&P 500





Technical Comment:

The up-and-down motion of the market has been developing both growth and decline patterns, which is typical at turning points.  Today a growth pattern finally emerged.  Our forecasting system could experience numerous changes between “uncertain” and “growth” going forward if the up-and-down action continues.

Subjective Comment:

There is a lot of financial and political news that is seems bearish for the markets.  In the past few weeks we have commented on the problems in Europe, price inflation in China and the debt ceiling issues in the US.  All of these issues remain, but the money printing in the US (QE-2) that concluded at the end of June is starting to show its impact.  Corporate earnings are being announced.  Apple today showed a “surprise” amount of growth last quarter.  There will likely be more “surprise” announcements of companies beating expectations and growing.

The reason the quantity of money is growing after the cessation of QE-2 is bank lending, which is picking up.  This money growth will cause a boom in the US economy along with serious price inflation.  The price inflation will eventually cause this boom to crash, but the boom will indeed happen.  Europe and China will experience problems because they have slowed the growth of their respective money supplies.  The Chinese stock market will crash before the end of the year and their economy will stagnate.  European markets will continue to experience problems as Portugal, Ireland, Italy, Greece and Spain struggle with debt and insolvency.

The politicians in Washington DC are expected to raise the debt ceiling by their deadline.  This will remove uncertainty, which can be good for markets.  Regardless of what news stories are written over the next few weeks, few if any will make the connection of the US money supply growth as the cause of improving corporate profits and increased hiring.  It is very difficult to anticipate how long the coming US boom will last, but it will absolutely be accompanied by price inflation higher than has been seen recently.  The money supply growth is the root cause of both the coming boom and price inflation.

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