Embrace the Pullback: Buy the SSO
Since Monday the ProShares Ultra S&P500 (SSO) has dropped 3.7%. The pullback in U.S. equities is believed to be temporary. Thus the cause to buy the S&P 500 index via the SSO.
Today the SSO managed to claw back 0.7%. Since Mid August when the SSO was trading at its 52-week high the ETF has lost 6.2%. The Talking Heads are saying stocks will bounce and the SSO is the right way to play it should the indexes tick higher. Want another reason to believe that stocks prices will go higher? How about War.
Stocks often rebound after missiles are launched
While talk of military action often spooks markets and drives down stock prices, history shows that stocks tend to rebound once the first shots are fired and uncertainty over what could go wrong fade.
NEW YORK — When the U.S. military moves against rivals, the stock market's initial reaction is to fall as uncertainty soars. But stock prices typically don't stay down for long after the missiles are dropped, historical market data show.
Indeed, data compiled by three Wall Street firms that measure how stocks have reacted leading up to, and following, various types of U.S. military action, suggest that the stock market's current hand-wringing over the USA's expected strike at Syria might be short-lived. (source:USA Today)
The ProShares Ultra S&P500 (SSO) closed today at $79.84 and its shares are now -9.06% below its 52-week high.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- White House Spokesman Slams Media Over "Crowd Size Comparisons" In Bizarre First Briefing | ZeroHedge
- Netflix Can Add Subscribers - But At What Cost? (Video) | ZeroHedge
- OPEC Praises Production Cuts, Reveals No Penalties For Violators As Deal Skepticism Rises | ZeroHedge
- Treasuries Besieged by 'Idiot Money': Record Shorts in Treasuries Paint an Ominous Picture for Bond Bears | ZeroHedge
- Politicians Across America Continue Push To Make Protesting Illegal | ZeroHedge
- Germany's Anti-Establishment AfD To Discipline Leader For Controversial Holocaust Memorial Speech | ZeroHedge
- David Rosenberg: "The Travesty Is We Have 23.5 Million Americans Aged 25-To-54 Outside The Labor Force" | ZeroHedge
The most relevant financial news and articles from the Internets
- This list of every 'Word of the Year' is like taking a trip through time | Business Insider
- Supply Chain Management: The Next Big Thing? | BusinessWeek
- I attended the Women's March on Washington, and discovered it was about... | Business Insider
- Hotel guests are requesting rooms without views of Trump Towers... | Business Insider
- People are freaking out about American Airlines' new '... | Business Insider
- Americans are rejecting the 'homeschool myth' — and experts say the... | Business Insider
- Iceland knows how to stop teen substance abuse but the rest of the world... | Business Insider