ProShares Ultra Russell2000 Value ETF (UVT) — This leveraged ETF seeks daily investment results that correspond to twice the daily performance of the Russell 2000 Value Index (RUJ).
On March 5, UVT broke from a complex quadruple-top that had taken longer than six months to develop, running from $23 to above $26.
The breakout was accompanied by a trading buy signal from the 20-day moving average as it popped through the 50-day moving average.
Even though momentum is strong, volume has been accumulating for over a month, and it could be subject to a violent correction.
However, if the uptrend continues, a near-term target of $28 to $30 is possible.
A word of warning: This is “for traders only,” as the SEC has determined that “ultra funds” are not good long-term investments and are most appropriate for short-term trades. Because it carries greater risk than an ordinary ETF, be sure to use a stop-loss. Finally, the margin requirement for most leveraged ETFs is 100%, but check with your broker before entering an order.
Related Articles:
Top 5 Stocks for 2010
These must-have companies are just hitting their stride and are poised to outperform the market in the short-term. Investing pro Louis Navellier reveals his top five picks for 2010 in this free stock guide — download your FREE copy here.