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
- Meanwhile In California, Unambiguously Ungood... | ZeroHedge
- Europe’s Survival Depends on Debt Restructuring, Not Growth | Financial Sense
- Are Weak Earnings Signaling Recession Ahead? | Financial Sense
- How Much Crude Oil Do You Consume on a Daily Basis? | Financial Sense
- More Giant Craters Appear In Siberia, Scientists Nervous To Investigate | ZeroHedge
- China Cuts Interest Rates, Takes Number Of Central Banks Easing In 2015 To 21 | ZeroHedge
- 1987 Or 2015? The Gap Between Growth Expectations & Valuations Is "Ridiculous" | ZeroHedge
The most relevant financial news and articles from the Internets
- The Best Business Schools of 2011 | BusinessWeek
- Chelsea beat Spurs 2-0 to lift League Cup | Business Insider
- A new bill in New York could give whistleblowers a big cut of recovered money | Business Insider
- HP CEO Meg Whitman makes the whole company follow the advice in this book (HPQ) | Business Insider
- Warren Buffett is endorsing one of the hottest startups on the planet | Business Insider
- Uruguay's pot-friendly farmer president prepares... | Business Insider
- The way Warren Buffett thinks of a great value is really gross | Business Insider