Markets

A Super-Charged “Bull” ETF

By Adam O'Dell  |  January 8, 2020

Last week I shared the first recommendation from my 20 Trade Ideas for 2020 and Beyond series.

The JUST Capital ETF is a great way to gain exposure to a passive stock market index, with something of a “do-good” twist. I expect this fund will outperform its Russell 1000 benchmark over time, but only to a moderate degree. If you really want to beat the market during a bull run, you should consider investing in a leveraged, “2x” stock index fund, like the ProShares Ultra QQQ Trust (NYSE: QLD).

This fund — “QLD” henceforth — is designed to track the movements of the Nasdaq 100 index, which is comprised of the 100 largest non-financial stocks that trade on the Nasdaq exchange. It tends to be technology-sector leaning and does include the so-called “FAANG” stocks.

It’s also leveraged to give two-times (aka “2x”) the daily return of the Nasdaq 100 index. So, if the index goes up or down by 1% today, shares of QLD will go up or down by 2%.

Obviously, leverage being a so-called “double-edge sword,” QLD is not a good bear-market holding.

But when used tactically, and with a systematic market-timing model that’s designed to give “All Clear” indications on lasting bull market runs, QLD can be a great way to really juice your returns and trounce the market.

My 10X Profits readers know this well — we’ve been invested in QLD ever since January 15, 2019, when my market-timing model gave us that “All Clear” signal.

And guess what? We’re now up more than 70% on the trade!

There is literally not a single stock market ETF — of any flavor — that is up more than QLD since our mid-January buy.

The S&P 500 (NYSE: SPY) is up 24%, the non-leveraged Nasdaq 100 (Nasdaq: QQQ) is up 33%, the technology sector (NYSE: XLK) is up 45%, and semiconductor stocks (NYSE: XSD) are up 58%! These are all top-performing markets. But none have done as well as our super-charged Nasdaq fund: ProShares Ultra QQQ Trust (NYSE: QLD).

Now, let me stop myself here for a moment, because I think I know what you’re thinking…

“But What If This Bull Market is Ending?”

It probably feels to you like the bull market that began in 2009 is closer to ending than beginning. I feel that way too.

But I’ve learned to make good money investing by not putting too much emphasis on what I’m feeling about a market. And frankly, there were also times in 2019… and 2018… and 2017… and 2016… when I felt that the bull market’s days were numbered. Yet it has carried on and made bullish investors quite profitable.

The point is… with a systematic market-timing model — like the one I’ve used in 10X Profits since 2016 — you really don’t need to know whether the bull market is ending today, next month, or next year…

What you do need are:

  • A flexible mindset — that is, a willingness to switch positions when warranted, and an “inner peace” about not knowing for sure what’s next.
  • A systematic “market-timing” model — one that tells you definitively whether to position for a bullish “boom” rally, or, instead, for a bearish “bust.”
  • Just two ETFs — one “bull” ETF for when the model’s in “bull mode” and one “bear” ETF for when trouble’s ahead.

The Proshares Ultra QQQ Trust (NYSE: QLD) is the “bull” ETF we used in 10X Profits. We invest in QLD when my model gives us the “All Clear” signal. But we’re quick to sell it any time we get my model’s other, “Trouble Ahead” signal.

This way, it really doesn’t matter how we feel about the market, or all the risks — both known and unknown — that sit in the backs of the minds of the typical worry-wart investor.

We simply follow my model’s signals. When signaled that it’s time to make hay while the sun shines, we confidently and patiently remained positioned in our super-charged Nasdaq 100 fund — QLD.

This isn’t the first time I’ve written about this super-charged stock fund…

The Proven Potential of QLD

After seeing that my 10X Profit model’s January 2019 “All-Clear” signal was sticking, I wrote this piece in February about QLD and my market-timing approach… showing how it navigated the ending of the 2002-2007 bull market.

If you’d bought into QLD after reading that note from me, you’d be holding a profit of 59% by now — not much less than the 70% my 10X Profits readers have on their January 15 trade.

I also highlighted QLD in my October 2019 Irrational Economics Summit presentation, which I titled “20 Trade Ideas for 2020 and Beyond,” and which is the basis for this series and 20-ETF portfolio that I’m now sharing with you.

Since that October 10, 2019 presentation, QLD is the top-performer at +30% — in just three months, mind you.

All told, a position in QLD will be more volatile than a position in a vanilla stock fund, like QQQ or SPY. But during bull market runs like the one we’re in now, it can be well worth it to have a little exposure to a 2x-leveraged fund, like the ProShares Ultra QQQ Trust (NYSE: QLD).

I recommend adding some exposure to QLD today. My model is still in “All Clear” mode. And to gain access to future signals from my 10X Profits market-timing model, simply click here.

To good profits.

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Adam O'Dell

As Chief Investment Strategist for Dent Research, Adam O’Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with minimum risk. He achieves this with his perfect blend of technical and fundamental analysis.

Tactically, he does extensive back-testing and probability-based research. It’s the ultimate partner to the exhaustive research that Dent Research co-founders Harry Dent and Rodney Johnson do in the exciting realm of the new science of investing.

Adam is also the executive editor of our hugely successful trading services, Rich Investors Club, Cycle 9 Alert and 10X Profits.

He has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high-profit potential.

Aiming to find the best opportunities across all asset classes, Adam expanded into the commodities, equities and futures markets. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. MORE FROM AUTHOR