For Wednesday, March 28, 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 declined 0.3% Tuesday with volume below Monday and lighter than the 30-day moving average volume.  The S&P 500 would have to drop about 21 points (-1.4%) on Wednesday to change our forecast to an uncertain trend.

Subjective Comment:

US markets were flat most of the day with a slight gain until near the end of the trading session when the minor decline occurred.  The small drop Tuesday was on lighter volume that Monday’s advance.  Like the large advance two weeks ago on 3/13, the market is holding its gains after the gain.  The daily market data does not show any signs of weakness right now.  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

The expanding US Money Supply is why stocks are going up, why the US economy has entered another bubble-boom and why price inflation is going to get worse.  We’ve written about this many times, so today we thought we would provide links where others are saying the similar things.  EconomicPolicyJournal.com noted US stocks are on track to have the best first quarter in 14 years.  EPJ.com also noted bidding wars for housing in markets where the newly created money is first flowing.  ZeroHedge.com noted that Europe is also printing money, and they noted a survey where expectations for price-inflation have reached a 6-month high among consumers.  Finally, here is a very good article by Gary North where he describes the digital money printing tendencies of the Federal Reserve and expected consequences.

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