For Monday, Aug 15, the market forecast is for growth

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

Here are some options:

2x Leveraged ETFs

NASDAQ 100

Russell 2000

S&P 500

QLD

UWM

SSO

3x Leveraged ETFs

NASDAQ 100

Russell 2000

S&P 500

TQQQ

URTY

UPRO

Technical Comment:
Friday’s gain in the S&P 500 was just over 0.5%, and it was on higher volume. Typically trading on Fridays is lighter than normal, so the higher volume is more significant. The volume was both higher than the previous day and the 30-day moving average.

Subjective Comment:
After a tumultuous week of enormous gyrations in US markets, Friday’s action was more settled. The growth in the S&P 500 was on higher volume, which is a bullish indicator. The money supply in the US continues to accelerate its growth which will drive price inflation and increases in stock prices. To stay ahead of the wealth erosion of price inflation, we recommend leveraged investing. (It is also wise to take steps to protect and preserve your wealth from the price inflation that is coming.)

Continued volatility remains likely as the sovereign debt crisis in the Eurozone and price inflation in China continue to be problems for those economies. Those problems will continue to pull against the developing up-trend in US markets. Eventually investors will adjust their portfolios to take advantage of the new trends we have been discussing. Getting into the market ahead of the heard can be very profitable, but it also exposes you to the volatility common at turning points. Unless the extreme market swings cause another large drop, we expect our forecast to remain for growth for the next few days. Still, please keep checking our forecast because we are not sure a smooth up-trend will develop from here. Also mark your calendars for the following dates:

  • August 26th – Ben Bernanke’s Jackson Hole speech, revised US 2nd Quarter GDP and expiration of short-selling ban in several European markets. If the Federal Reserve Chairman announces QE3, this will have a big impact on the markets, the price of precious metals and on price inflation.
  • September 30th – End of the Federal Fiscal Year. This means Congress has to pass a new budget or a continuing resolution to avoid a government shutdown. It was just this past April (4 months ago) that a contentious political process produced the most recent continuing resolution. The more recent debt ceiling debate and the downgrade of the US credit rating was even more difficult politically, and with the election process beginning it’s likely a budget or another continuing resolution will see more drama from Washington DC. To the extent this impacts markets is unknown, but it will dominate headlines again.