Investors likely to push the stock market higher again
The Fortune Teller Speaks:
Investors are likely to push our stock markets higher again today despite index divergences yesterday.
All Eyes on Wall Street:
All eyes on Wall Street will likely continue to be focused on more Q4 2013 earnings reports, with tech giants eBay (EBAY) and Netflix (NFLX) scheduled to release their earnings reports right after stock market close. Investors are also likely waiting for tommorrow’s rash of economic data, which will certainly play into tomorrow’s game.
Judging by the moves of stock markets as of late, we are again faced with a sideways tug-o-war between the bulls and bears and I believe eventually the bears will win out, but not today.
Hindsight is a Beach and We’re Playing on It:
Yesterday we were 2/3 correct, with the S&P 500 (SPY) rising .28% and the NASDAQ 100 (QQQ) rising .65% in our favor; the Dow Jones Industrial Average (DIA) moved .27% against us.
If we had traded our beloved leveraged ETFs yesterday, we would have (in theory) made money on the long 2X S&P 500 ETF (SDS) which rose .55%, the long 3X S&P 500 ETF (UPRO) which rose .88%, the long 2X NASDAQ ETF (QLD) which rose 1.51%, and the long 3X NASDAQ ETF (TQQQ) which rose 2.24%. Not bad in a days work.
As for the Dow Jones Industrial Average long 2X ETF (DXD) and 3X ETF (SDOW), we would have lost .40 and .67% respectively.
Exchange Traded Fun:
So if we are calling another long day tomorrow (which I can’t believe we are but gotta stick to the signal), we may have a chance of cleaning up on the following long and levereaged index ETFs:
Long 2X S&P 500: SSO
Long 3X S&P 500: UPRO
Long 2X DJIA: DDM
Long 3X DJIA: UDOW
Long 2X QLD
Long 3X TQQQ
The Long and Short of It All:
I can’t believe the bulls can go any higher, but we have to stick to the signal. Best of luck to us!
This stock market forecast is for educational and informational purposes only. It is not intended to be investment advice nor an investment recommendation. Past performance is no guarantee of or indication of future performance and your performance may vary widely from any that may be indicated in this column. There is risk of loss in all investing and trading activities and you should consult your financial adviser before making any investment decisions.
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