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.