For Friday, Sep 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:

The S&P 500 closed up 1.7% on Thursday.  Volume was lower than Wednesday and lower than the 30-day moving average volume.  A
stronger indicator of future growth is an advancing market on higher volume.  The S&P 500 would have to drop by about 42 points on Friday before our automated forecast might change.

Subjective Comment:

European and US markets were up again on Thursday.  European markets increased quite a bit with the German DAX up 3.2% and the French CAC 40 up 3.3%.  European politicians and bureaucrats keep making announcements regarding what should be done to deal with the sovereign debt crisis and the fragility of European banks.  These comments are a distraction from what’s probably considered boring by most media outlets, and that is the actions by the Central Banks.  The European Central Bank (ECB) made this announcement today:

The European Central Bank has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year…

Analyst Bruce Krasting thinks “this is an acknowledgement of profound weakness in the funding markets in Europe.  The swaps may mask the problem for a few months.”  These swaps will be loans to European banks funded by US Dollars from the Federal Reserve.  The European markets likely reacted to this news and moved higher.  We agree this will only mask the problems.  Greece will likely default, and presumably the Dollar swap loans will help the banks as they write down their Greek bonds.  None of this will solve the problems in Europe, but it will likely cause higher volatility with a resuming downward trend in the future.

We mention the European markets because they continue to have some influence on US markets.  The accelerating growth of the US money supply, caused by excess reserves being loaned and multiplied by fractional reserve banking practices, will drive serious inflation in consumer prices and US stock markets.  Today the highly-manipulated Consumer Price Index (CPI) was published by the Bureau of Labor Statistics.  The reported CPI increased 3.8% over the last 12 months.  This is close to double the Federal Reserves’ target of about 2%.  A more accurate value is charted at Shadowstats.com and is about 12%.  With $1.6 Trillion in excess reserves capable of more than doubling the US money supply, these inflations numbers will go higher and overwhelm any downward drag on US markets from Europe.