Double Down on a Rally With SSO

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ProShares Ultra S&P 500 (NYSE: SSO ) - Since the purpose of this exchange-traded fund ( ETF ) is to mimic twice the performance of the S&P 500, its chart looks very similar to the parent index's chart.

Note the quadruple-bottom, the double buy signals from our internal indicator, the Collins-Bollinger Reversal ( CBR ), and the stochastic buy signal. The trading target for SSO is $41.

Use caution with this trade, because leveraged ETFs require active, even daily monitoring and management, and entail unique risks over periods as short as a single day.

Results can be affected substantially by compounding, and returns over longer periods will likely differ in amount and even direction. So the SEC warns that these products are not suitable for long-term investors.

SSO Chart

Chart Legend

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: CBR , ETF

Sam Collins

Sam Collins

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