ProShares Ultra Financials
) -- This exchange-traded fund (
) seeks daily investment results that correspond to twice the daily
performance of the Dow Jones U.S. Financials Index.
UYG traded for six months within the confines of a rectangle
bounded by support at $50 and resistance at $64.
On March 11, at $63,
, "Following a period of very high accumulation, this ETF appears
to be breaking from a
with supporting evidence of the break coming from the crossing of
the 50-day moving average by the 20-day moving average. If
successful, the target for a trade in UYG is $72.50 to $75."
Then, on March 31, at $69,
, "For those who bought UYG and made a profit, it is time to
Since then, UYG drove to $75, but has fallen to $50 last week,
where it flashed a second buy signal from our internal indicator,
the Collins-Bollinger Reversal. If successful this ETF could run
first to $60, and then to $65.
This "ultra fund" carries greater risk than an ordinary ETF, so
investors should use stop-loss orders. Also, this play is "for
traders only," as the SEC has determined that ultra funds are not
good long-term investments and that they are most appropriate for
for most leveraged ETFs is 100%, but check with your broker before
entering an order.
If you have questions or comments for Sam Collins, please
e-mail him at
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