For Tuesday, Sep 13, 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 S&P 500 closed up 0.7% on Monday. US Markets had been down most of the day before closing up on volume higher than Friday and higher than the 30-day moving average volume. For our forecast to change to uncertain the S&P 500 would have to close down about 28 points on Tuesday.

Subjective Comment:
Downward pressure from Europe continues to influence US markets, however this influence may be weakening. London’s market was down 1.6%, Germany’s market was down 2.3% and the French CAC was down just over 4% on Monday. This is likely why US markets were initially down, but never more than about 1% below Friday’s close before finishing Monday’s session up for the day (Dow +0.6%, S&P 500 up 0.7% & Nasdaq up 1.1%). The tightening money supplies in Europe and China are crashing European and Chinese markets. The European Central Bank did repurchase bonds of various European countries during August valuing about $100 Billion (US). This is the same order of magnitude as the monthly Quantitative Easing done by the US Federal Reserve earlier this year. So far, the ECB has been off-setting these bond purchases by removing equivalent amounts of Euros from the money supply. It is healthy in the long-run for central banks to NOT print money. However, after periods of money printing, halting or slowing the presses causes a market and economic crash after the inflationary boom. Since the ECB slowed then halted their money printing, the Eurozone has been experiencing the top and now the downward crash of the bust in the business cycle. The new ECB President might begin printing Euros in November. Things will likely get even worse in Europe before then. Current ECB Present Jean-Claude Trichet could begin printing Euros before November. He was quoted today saying the ECB is ready to provide unlimited amounts of liquidity, which is central-bank-speak for money printing. Of course, this could just be a bluff, because bluffing is also something central bankers do.

Our automated forecast remains for growth.  This is consistent with our subjective opinion that the rapidly expanding US money supply will cause serious inflation in the near future, along with increasing stock prices. Please see our previous posts for more detailed discussions regarding the expanding US money supply.

Comments are closed.