Profunds index and sector trading

[Namiar]

August has been the worst month of the year for the SPX over the past 18 years. For NAZ and Dow, the second worst.

But wait, there is good news. From the low of a midterm election year to the high of the next year, the DJIA has advanced on average 50%.

This has always worked - no failures. The smallest advance has been 14.5% in 1946-1947. Sometimes it is much higher. Last time Oct2002 to Dec2003, the advance was 43.5%.

Just think, you can put your money into 2X Dow fund and have a 100% return by 2007 December.

Of course finding the bottom is key, but I would like to think that were within 5% of it.

Looking at the SMH in freefall, you have to wonder if a 2X position in SMH wouldn't produce a 200-300% return in the same period.