New Trading Target for QLD
09/25/2009 12:01 am EST
On July 21, I recommended QLD at $41.62 as a quick trade, and it promptly ran to more than $46.
Then, on Sept. 9, I said, " It could provide a quick trade again, but only if it can break from the bull channel with a top at around $49. A new stochastic buy signal and two Collins-Bollinger Reversal (CBR) signals support a breakout. And, if it occurs, there is little overhead to slow it down before reaching a target of $55."
Wednesday's new high with the gusto of increased volume expands my target from $55 to $58.
But, the Ultra ProShares are high-risk funds, and some studies have found that they do not provide the multiple return expected for longer-term holders.
Also, this ETF may not be eligible for margin, so check with your broker for any trading restrictions before entering orders. And consider entering stop-loss orders to protect against violent corrections.
By Sam Collins of OptionsZone.com