Our first idea is a fund that seeks investment results that correspond to two times (2x) the daily performance of the S&P 500. Our second recommendation is a sale of a previous idea.
Buy: ProShares Ultra S&P 500 Fund (SSO)
From Cabot Growth Investor
Our plan remains the same for our good-sized position in ProShares Ultra S&P 500 Fund (SSO): Should the fund close below 82 or thereabouts (which would correspond with a break of the 50-day line in the S&P 500 and almost certainly a new Cabot Tides sell signal), we’ll likely take partial profits and hold the rest through any intermediate-term correction that develops.
But until then, we’re not going to anticipate further weakness; in fact, the dip in SSO to its 50-day line this week is the second since the November blastoff, which usually results in a decent entry point. (The first test was near the end of January, just before it moved to new highs.) If you already own some, just sit tight, but if you want in, it’s OK buying some around here.
Michael Cintolo, Cabot Growth Investor, www.cabotwealth.com, 978-745-5532, March 29, 2017