Tuesday, August 24, 2010

UPRO as a bounce trade

If I had to choose I stock it would either be a long leveraged version of the QQQQ or UPRO-it gives you leveraged exposure to the market, if you missed any of the long trades triggered today you can take a look at those as well, but not every sector will rise, however in a market bounce, an ETF like UPRO or QLD should.

I would use good risk management, this is still speculative and chances are fairly good we see another false downside breakdown-gap down that they start pushing up in the afternoon. Your risk management should allow you to absorb such a move, but still not put your portfolio at more then 1-2% risk on the trade-RISK MANAGEMENT!

I feel there's a decent chance now that we will see a move up, how far? Take a look and be sure to remember this is a short term speculative trade for some extra cash, not a trending position.





No comments: