For Thursday, June 14, 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 on Wednesday by 0.7% with volume higher than Tuesday but below the 30-day moving average volume.  Should the S&P 500 decline another 13 points (-1%) on Thursday our forecast could change to an uncertain trend based on the stop-loss algorithm within our automated forecast.

Subjective Comment:

Wednesday was technically a strong-volume down-day, marking the second such day in the past 3 trading sessions.  It is important to emphasize again the continuation of the weak pattern of up-days on light volume and down-days on strong volume.  This has been happening for weeks and this week has been no different.  This technical pattern strongly suggests US markets will not grow.  The Eurozone debt crisis and the Greek elections this weekend are creating uncertainty which will have some impact on US markets for the rest of this week and possibly next week as well.  Our system is predicting a 50% chance of growth or decline, which means our automated forecast is uncertain what will happen.

Integrating the zero growth in the US M2 Money Supply over the past 3 months and Austrian Business Cycle Theory explains that a market crash combined with an economic contraction will occur soon unless the money supply starts growing again very rapidly and very soon.  The current mini-bubble-boom appears to be drawing to a close and we will see a bubble pop.  Should US Banks resume aggressive lending, or should the Fed begin another round of Quantitative Easing, then the crash could be delayed but not avoided.  Continue to accumulate cash and maintain a risk-off position or otherwise sell US equities.  Avoid all bonds and hold your price inflation hedges.

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