For Tuesday, March 27, 2012, the market forecast is a growth-trend

We recommend any leveraged Exchange Traded Fund (ETF) that grows with the US market.

2-Times Leveraged ETFs

NASDAQ 100

Russell 2000

S&P 500

QLD

UWM

SSO

3-Times Leveraged ETFs

NASDAQ 100

Russell 2000

S&P 500

TQQQ

URTY

UPRO

Technical Comment:

The S&P 500 rose 1.4% on Monday with volume above Friday but below the 30-day moving average volume.  By reaching an index value of 1416, the S&P 500 is at a level not seen since May 2008, almost 4 years ago.  The S&P 500 would have to drop about 24 points (-1.7%) on Tuesday for our forecast to change to an uncertain trend.

Subjective Comment:

The strong up-day for US markets is encouraging as the up-trend is clearly continuing.  It would be better to see up-days occur on stronger volume.  Never the less the patterns in the daily market data suggest continued market growth.  This is consistent with the growth rate in the US money supply.  We will continue to watch the money supply statistics closely for any slowdown as that would be the earliest indicator of a change in the current direction of US markets.

We expect continued growth in US markets and high price inflation, so our investment advice remains unchanged:

  • Sell all your bonds, including TIPS
  • Research and invest in hedges against price inflation
  • Invest in leveraged index funds to take advantage of the continuing growth in US markets
  • Keep checking our daily forecast

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