Ultra QQQ ProShares (QLD) — This Exchange-Traded Fund (ETF) seeks daily investment results, before fees and expenses, which correspond to twice the daily performance of the Nasdaq 100 Index (QQQQ).

The fund normally invests 80% of assets in financial instruments with economic characteristics that should be twice the return of the index.

Tuesday’s sell-off to the major support level of the Dow (DJI) could lead to a general short-covering rally and bear-trap, giving traders an edge in this ETF.

But Ultra ProShares are high-risk funds, so those who are willing to make the bet should wait for a pullback to just above $24 and buy when they see a reversal forming. But traders should only risk what they can afford to lose.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.