For Thursday, May 3, 2012, the market forecast is a growth-trend

We recommend any leveraged Exchange Traded Fund (ETF) that grows with the US market, but please read our comments below before investing as our subjective opinion differs from our automated forecast.

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 0.25% on Wednesday with volume just below Tuesday and slightly above the 30-day moving average volume.  On Thursday the S&P 500 would have to decline another 27 points (-2%) to trigger the stop-loss algorithm and switch our forecast to an uncertain trend.

Subjective Comment:

Wednesday’s volume was not enough to classify it as a strong-volume day, so the decline was considered light-volume by our pattern recognition software.  This means a bullish pattern is still forming as strong-volume up-days are happening with light-volume down-days.  The pattern is not yet complete and provides no predictive value for investing yet.  The weakness a few weeks ago is fading, but the most recent predictive pattern our system identified is a 50% chance of growth or decline.  We remain subjectively uncertain about the direction of the market from here.  The daily market data is showing the possibility of strength, but economic data continues to suggest a slowing of the economy consistent with Austrian Business Cycle Theory.

Continue to research investments to hedge against price inflation, avoid all bonds and money market funds as they have exposure to European sovereign default risk.

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