Two Possible Ways to Play a Reversal in the Stock Market

Investors are looking for a substantial way to take advantage of an up spike in the NASDAQ exchange and the stock market as a whole. We are stepping away from our usual discussion of penny stocks and focusing on two Exchange Traded Funds (ETFs).

An Exchange Traded Fund (ETF) is a security that tracks an index, but trades like a stock on an exchange.

The QQQQ is the ticker symbol for the NASDAQ 100 Trust, tracking the tech sector, consisting of the 100 largest and most actively traded non-financial stocks on the NASDAQ. The QQQQ is an exchange traded fund.

The QQQQ has traded down from over $47 in early September to a price of around $25.50, currently. If an investor is comfortable with the risk, they may decide to play the QQQQ options for additional leverage and additional possible gains. After a bottom in the NASDAQ exchange, many of the future long-term gains are made in the first few days or weeks of a turn around, so it is important to be positioned in a financial device like the QQQQ.

The DGP (PowerShares DB Gold Double Long ETN) is a possible way to play a reversal in the gold market and stock market. We expect gold prices to appreciate with a possible stock market reversal. Stock market losses have weighed on gold prices. It is speculated that the gold index and gold stocks will be major winners over the next few years.

DGP shares are designed to follow gold prices. DGP was recently trading near $22 before dropping to as low as $12 as gold prices per ounce dropped from over $900 to around $725. We believe gold prices will reverse and the DGP has the ability to act as a great investment device to leverage an upswing in gold.

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