This week’s idea of the week - yes we know there wasn’t one last week and yes we will supply two this week - is, buy the S&P500.
You can play it simple and pick up some $SPY or you can play it with more risk at buy some $UPRO, which is a daily
3x levered play on the S&P500. (If you want to know more about these levered ETFs, take a look out our Cestrian ETF Select
newsletter - we wrote about the 3x daily Dow Jones ETF, $UDOW, here
, and about $UPRO, here
Our logic is simple. One, investors everywhere will tell you there’s going to be a big war in Europe and maybe beyond, that the Fed is going to remove money from the system until we’re all just grateful to have a couple loaves of bread and some tinned tomatoes, that long Covid is going to decimate the working population and that actually this is all a nothingburger anyway because nuclear bombs.
Well, if we’re not at Peak Yikes yet then we think it’s close.
In November 2021 we were saying to subscribers of our Growth Investor Pro service
that we thought the market - in the shape of the S&P500 and the Nasdaq - had peaked, because both charts were showing the relevant ETFs at the top of a Wave 3 up, bumping up against important resistance levels and unable to break through.