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Bag a Quick Profit With ProShares Ultra QQQ

by Sam Collins 09/09/09

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

On July 21, I recommended QLD at $41.62 as a trade, and it quickly ran to more than $46. It could provide a quick trade again, but only if it can break from the bull channel with a top at around $49.

A new stochastic buy signal and two Collins-Bollinger Reversal (CBR) signals support a breakout. And, if it occurs, there is little overhead to slow it down before reaching a target of $55.

But the Ultra ProShares are high-risk funds, and for longer-term holders some studies have found that they do not provide the multiple return expected.

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