$DWTI and leveraged index ETFs shine again

GMI6/6
GMI-28/9
T210853%

If I had bought and held these ETFs from January 2 until Tuesday’s close I would have made: DIA: +9.35%; SPY: +13.9% and QQQ: +19.53%.     However the following bullish leveraged QQQ ETFs far out performed these:   QLD: + 42.4% and TQQQ: + 66.01%.   And the 3x leveraged bearish oil commodity ETF beat them all:   DWTI: +235.11%.   How did I miss that one?   Check out the DWTI weekly chart. There was plenty of time to jump on board for the ride.

DWTIweekly

Happy New Year!

6th day of $QQQ short term up-trend; $INGN breathes new life

GMI6/6
GMI-28/9
T210853%

My great stock picker friend, Judy, knows someone who needs to be on oxygen. Judy   discovered that there is a product made   that is   very mobile,   light weight and has a great battery. She claims that it beats the competition and makes a huge difference to people who must be on oxygen.   So Judy researched the product and identified its manufacturer,   INGN. Judy does very well by picking stocks that have a great concept underlying their product. She bought some INGN.

INGN is a recent IPO and is scheduled to make some investor conference presentations in mid-January.   The stock may therefore be volatile in the coming weeks.   Nevertheless, I bought some INGN. By the way, INGN had a green line break-out in November, consolidated, and then moved up. Check out its weekly chart. It has already doubled.

INGNweekly

 

 

Whither oil?

GMI6/6
GMI-28/9
T210854%

One of my students made a small fortune   the next year after taking my honors course by shorting (buying put options) USO during oil’s collapse in 2008.   I took a look at the chart of USO, an oil commodity ETF, and was surprised to see that USO has now closed below the level of its   bottom reached in early 2009. Take a look at this monthly chart. December’s trading volume thus far   is a lot less than the monthly volume at the 2009 low. (Note that the TC2000 monthly bar only presents the cumulative total since the beginning of the month,   so it underestimates December’s full month volume.)

USOmonthly

This weekly chart of USO shows more clearly what has happened recently.   Two weeks ago there was a large volume bounce up of USO after a near vertical multi-week drop, and it closed that week near the top of its weekly price range.   Notice that that bounce came on the largest weekly trading volume in months. More significant, note that last week USO gave back most of the bounce. Given that USO has closed below the 2008 bottom after a 4 year side-ways consolidation, this could mean that USO (and oil) may have a long way down to go?? What would that do to the bullish market scenario for 2015 embraced by so many…….. (By the way, all of the other oil-related commodity ETFs I checked had the same price pattern.)

USOweeklyMeanwhile the GMI remains at a full 6 (of 6).

GMI12262014