Wall Street Digest Hotline Update

This is an Interim Wall Street Digest Hotline Update for Wednesday, November 12, 2008, at 6:00 p.m. EST.

Profit warnings by Best Buy helped push stock prices lower today. At the close, the Dow plunged 411 points, closing at 8,283, while the Nasdaq fell 81 points, closing at 1,499. The S&P 500 lost 45 points, closing at 852. Oil closed $3.17 lower at $55.75 per barrel, and gold closed $14.50 lower at $718.30 per ounce.

The market is testing the October lows. The completion of an inverse head-and-shoulders pattern could produce the final bottom followed by a strong 2- to 6-month bear market rally back to Dow 11,000 to 12,000.

(A) If you are out of the market stay out and wait for the bottom.

(B) If you are short the market stay short for now.

(C) However, if you are long the stock market, consider purchasing off-setting short positions so you are market neutral. Use Proshares 200 percent short ETFs to offset your long positions.


ProShares Ultra Short 200% Short

Dow 30 DXD

S&P 500 SDS

Russell 2000 TWM

Nasdaq 100 QID

S&P 400 Mid-Cap Index MZZ


Make no further portfolio investments.

Now is a good time to read "The Great Bust Ahead" by Daniel Arnold, and "Dollar Crisis" by Richard Duncan.

Stay close to our Hotline Updates.

The next Hotline Update will be on Friday, November 14, 2008, at 6:00 p.m. EST.

Wall Street Digest Hotline Update

This is an Interim Wall Street Digest Hotline Update for Wednesday, November 5, 2008, at 6:00 p.m. EST.

Uncertainty over the new administration pushed stock prices lower today. At the close, the Dow plunged 486 points, closing at 9,139, while the Nasdaq lost 98 points, closing at 1,681. The S&P 500 closed almost 53 points lower, closing at 952. Oil closed $5.23 lower at $65.29 per barrel, and gold closed $14.90 lower at $742.40 per ounce.

The market's gains since the Wednesday, October 27, 2008 bottom last week have been largely from short-covering. However, aggressive buying on Tuesday triggered a technical buy signal.

The pull-back today produced a better buying opportunity for investors.

Here are the best performing ProShares ETFs. All eight of these ETFs are leveraged 200 percent:


ProShares Basic Materials UYM

ProShares Russell 2000 Index UWM

ProShares Financial Index UYG

ProShares Telecom Index LTL

ProShares S&P 500 Index SSO

ProShares Mid-cap 400 Index MVV

ProShares Nasdaq 100 Index QLD

ProShares Dow 30 Index DDM



This is a bear market rally that could move up to Dow 11,000, possibly 12,000 before the Recession and Bear Market of 2010-2014.

Now is a good time to read "The Great Bust Ahead" by Daniel Arnold, and "Dollar Crisis" by Richard Duncan.

Stay close to our Hotline Updates.

The next Hotline Update will be on Friday, November 7, 2008, at 6:00 p.m. EST.