ProShares Ultra S&P 500 Fund (SSO): Moves about twice the S&P 500 every day
The market’s kickoff in November, recent tight trading and the strong upmove this week has set up a ton of potential entries, and with earnings season on the way, ETFs could offer solid upside at low risk.
I’ll start with the one ETF I own in Cabot Growth Investor—the ProShares Ultra S&P 500 Fund (SSO), which simply moves about twice the S&P 500 every day (percentage-wise), up or down. (If you can’t trade leveraged funds at your brokerage, you can use the SPDR S&P 500 Fund (SPY) instead.)
As I’ve written numerous times in the past few months, there are many reasons (big breakout, tight price action, blast-off signals in July, etc.) to believe that the overall market has begun a longer-term uptrend following nearly two years of tedious, back-and-forth action. If that’s the case, owning a leveraged long fund could be an “easy” (it’s never easy, but you know what I mean) way to make good money as the index pushes higher.
With SSO just breaking out from its five-plus-week range, you could buy some around here with a stop in the 75 to 76 range.