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 July 16 breakout of the Nasdaq (NASD) can be seen clearly on the QLD chart, as well as the Oct. 3-6 gap. Therefore, this ETF could be used by traders to meet a speculative goal. Please see the “What the Markets Are Saying” section of today’s Daily Market Outlook for more on this.
But Ultra ProShares are high-risk funds, and some studies have found that they do not provide the multiple return expected over the long run. (Learn more about leveraged ETFs.)
This ETF may not be eligible for margin, so check with your broker for any trading restrictions before entering orders.
Also, consider entering stop-loss orders to protect against violent corrections.
Get Sam Collins’ Daily Trader’s Alert e-mailed to you each morning before the opening bell absolutely FREE!
In addition to getting instant access to his Trade of the Day, you’ll also receive his Daily Market Outlook in the same e-mail so you can start your day off right by positioning yourself for profits!
Sign up today for Sam’s FREE Daily Trader’s Alert!
Sam Collins is a registered, fee-based portfolio manager who may be contacted at samailc@cox.net. You can also check out an archive of some of his most recent market outlooks.
