For Tuesday, Aug 16, 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:
Monday’s gain in the S&P 500 was just over 2.1%, and it was on volume slightly higher than the 30-day moving average volume. Combined with this past Friday, Monday makes two days of upward movement in the market on higher volume.

Subjective Comment:
There has been some commentary noting that volume has appeared weak during the upward motion in the market. This was true Thursday last week, but Friday’s volume was strong and Monday’s was above average. International markets were also up Monday, so it is possible all markets are still experiencing volatility as a holdover from last week. It is likely the market is still at a turning point and a trend in either direction could develop. We still expect expanding money supply in the US to drive price inflation combined with increases in stock prices.

It is not clear what actions the European Central Bank (ECB) and other authorities in the Eurozone will do in response to the turmoil in those markets. Speculation has begun that new Eurobonds could be issued, or the ECB could begin printing money. It is very discouraging to see so many countries resorting to the printing press as this will be very damaging for many economies and millions of people. Even if Europe begins printing money this week, it would take some time before the new Euros begins stimulating their economies. China is in a similar situation as Europe. China would have to significantly accelerate their money supply growth to avoid the pending crash their markets are about to experience. The US is in a different part of the business cycle because of the recent completion of QE2. All the newly printed US Dollars are working their way through the fractional reserve money multiplier which is accelerating the growth of the money supply. This is why the US markets are expected to accelerate upward soon, while European and Chinese markets are expected to decline.

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