For Thursday, Oct 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

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 1.0% on Wednesday on volume higher than Tuesday and higher than the 30-day moving average volume. An up-day on increasing volume is a bullish indicator. Another bullish indicator has been the series of multiple up-days over the past week and a half. The S&P 500 would have to decline about 55 points on Thursday (-4.6%) to switch our forecast from growth to uncertain.

Subjective Comment:

The S&P 500 is now about 9 points below the resistance level of 1216. This would be a 0.7% increase on Thursday. If the market were to close near this level, we would not see this as a bullish indicator. Instead, we’re looking for the market to move above this level on strong (higher) volume. If this were to happen, it would be another bullish indicator as the previous level of resistance is broken.

European markets were up again on Tuesday as more market participants realize there will be a bailout of the banks and an attempt to prevent the inevitable Greek default from spreading. While we doubt these efforts will fix the debt problems, they could delay defaults long enough to ease the downward pressure the European markets have been having on the US. As this happens, the expanding US money supply will fuel more growth in US markets. As the US markets continue to grow, more participants will pour into US equities causing more upward movement in the markets. Now is the time to invest in leveraged index funds to take advantage of the growth potential of this turning point. If you’re still unsure, consider waiting for the S&P 500 to move strongly above the 1216 resistance for confirmation we are seeing a rally instead of the repeating pattern of false starts experienced these past two months.

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