For Thursday, June 28, 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 advanced 0.9% on Wednesday with volume below Tuesday and lighter than the 30-day moving average volume.  The S&P 500 would have to decline about 15 points (-1.1%) on Thursday for our automated forecast to return to an uncertain-trend.

Subjective Comment:

For two consecutive days the S&P 500 market has advanced on light volume.  Light-volume up-days are a sign of market weakness, not market strength.  Our forecast changed to a growth trend based on our stop-loss algorithm which is susceptible to false-starts when the market moves sideways or experiences high volatility.  We think our forecast is showing another false start right now.

The leaders of the Eurozone countries are meeting again for a summit Thursday and Friday.  News from this summit could impact short-term trading in Europe and spill over into the US markets.  We doubt Europe will do anything substantial.  We recommend staying out of the market for equities and bonds.  Accumulate cash and avoid money market funds as they have exposure to European sovereign default risk.  Hold your price inflation hedges for the long term but do not add to those positions right now.  The next US money supply update will be published tomorrow, and we will analyze and comment on it.

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