For Wednesday, Aug 31, 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:

On Tuesday the S&P 500 closed slightly up on volume higher than Monday and a little higher than the 30-day moving average volume.

Subjective Comment:

Tuesday’s market action was positive with growth on higher volume.  It was not very strong, but it was consistent with market growth patterns.  A half hour before the market opened the monthly Case-Shiller 20-city housing index was published.  The index showed national home prices increased 3.6% in 2Q 2011, but that the 20-city index showed an annual price drop of -4.52%.  This was probably seen as mostly negative economic news and could have contributed to the S&P 500 opening lower.  A half hour after the market opened, more bad news was released from the Conference Board that conducts a monthly survey of consumer confidence.  The survey showed consumer confidence dropping to and index value of 44.5 for August, a 14.7 point drop from July.  Four minutes after this news was published, the S&P 500 dropped to its lowest point of the day.  Despite this negative economic news, after an initial decline, the market recovered and closed the day up 0.23%.  It is our continuing contention the accelerating US money supply growth is pushing markets higher and will produce serious price inflation and market growth in the coming months.  This upward force appears to be showing its ability to overcome negative news.  In the long run the growing money supply will cause distortions in the economy and inflict purchasing power losses on the vast majority of owners of US Dollars.  Leveraged investing the US index funds is one way to attempt to stay ahead of the price inflation.

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