For Thursday, Sep 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:

The S&P 500 closed up 1.35% Wednesday on volume higher than Tuesday and higher than the 30-day moving average volume.  Large market increases on higher volume is typical of bullish markets, but one day does not make a trend nor a significant pattern.

Subjective Comment:

European and US markets were up on Wednesday.  Large up and down days continue for markets.  Forecasting in this environment
is difficult.  We believe Chinese and European markets have topped and will continue to decline.  European markets will continue to have volatile
days, some up and more down.  US markets are beginning a new up-trend, but the world volatility continues to influence the US.

The headline news from Europe suggests Greece is near defaulting on its debt, and that several large European banks are also under significant financial stress.  The headlines focus on the obvious.  There will be a Eurozone decline, but regardless of the triggering event or what news outlets declare, the root cause is the combination of governments continued deficit spending with a halt in the printing of Euros by the European Central Bank (ECB).  After a period of inflating the Euro supply, the ECB has halted printing.  Austrian Business Cycle Theory (ABCT) describes why this will cause a necessary recession and decline in Eurozone markets.

ABCT also explains why the accelerating growth rate in the US money supply will cause a manipulated boom in the US market.  The unprecedented amount of Dollars dumped into the US banking system has the potential to more than double the money supply.  So much money has been created that serious price inflation will also result.  Initially businesses that provide large capital goods and products that take a long time to produce (examples: construction, software production) will boom as the low interest rates make otherwise bad projects appear profitable.  Commodities will also experience price increases.  Expect initial headlines to applaud a recovering economy.  Unemployment will remain high as it lags economic growth, but eventually it will begin to decline too.  The good news will not last long before price inflation begins to set in and people realize their wages and savings are worth less.  This is not a picture of good news economically, but it will cause stock prices to increase along with other prices.  It is likely stock prices will not rise as fast as inflation.  Leveraged investing should provide a means of outrunning inflation.  In the near term, volatility will remain high as Europe remains a drag on US markets.  Leveraged investing will create even more dramatic swings until the growth trend we’ve been predicting takes hold.

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