Market Overview

Why October Is A Time To Get Long The Market

By Chris Haley

I judge today that the Republican Party are close to dropping their attempt to force a change in the affordable care act into the budget bill. The larger issue of extending the debt limit may well be dealt with at the same time. We have likely a decent employment report on Friday and get into Q3 earnings next week, both rally producing in recent quarters.

For me, we will rally from S+P 1700 to 1900 by next May. The financials are the cheapest relative to history, though this quarters earnings are unlikely to be as good as last. If you wish to add leverage for a largely one way market, I judge that there is a 60%+ upside over the 8 months by buying Code (FAS) FAS Direxion leveraged 3 times US Financials ETF.  Today it is valued at $68 and you will sell it next May, as I predict fed funds increases declines next summer, for around $120.

A handsome reward for understanding market trends and opportunities.

fas

Regards.

 

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas

 

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