Stock Picks – ProShares Ultra QQQ-QLD

ProShares Ultra QQQ (QLD) – This exchange-traded fund (ETF) seeks daily investment results, before fees and expenses, that correspond to twice the daily performance of the Nasdaq 100 Index (NDX). 

We’ve covered QLD many times here in the past year, always noting that it is in a powerful bull market. But on Jan. 21, QLD rolled down, penetrating both its 20- and 50-day moving averages, before executing a key reversal day on Feb. 5. 

Since then, it has been under consistent accumulation, and on Tuesday broke through a double-top to a new 18-month high. 

Volume may not be as high as we would like in order to positively confirm the breakout, but momentum is high, and that alone could catapult QLD to a target of $70. 

This “ultra fund” carries greater risk than an ordinary ETF, so investors should use stop-loss orders.

Also, the SEC has determined that ultra funds are not good long-term investments and that they are most appropriate for short-term trades. The margin requirement for most leveraged ETFs is 100%, but check with your broker before entering an order.

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