Score 8.2 (out of 10): PROSHARES ULTRAPRO QQQ sets up for +15.5% rally in 3 months

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What’s Going On Here?

With the US Federal Reserve having turned more hawkish and predicting rate hikes as well as expectations that they will unwind their balance sheet, high growth technology companies have re-set lower. Powell seems to have assured the market that any interest rate changes might be gradual.

Why Now?

PROSHARES ULTRAPRO QQQ has triggered a new high volatility signal (2 month). During similar occasions, PROSHARES ULTRAPRO QQQ shares had a median return of +15.5%, over the following 3 months – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for PROSHARES ULTRAPRO QQQ received a high score of 8.2 (out of 10). This insight was generated on 2022-January-12 with last price of 152.68.

What’s This Company About?

PROSHARES ULTRAPRO QQQ is in the Growth&Income-Large Cap business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: TQQQ US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 176.32 (+15.5%) has been reached. Based on PROSHARES ULTRAPRO QQQ’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 132.58 (last price at 152.68), which is equivalent to a -13.2% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

60.8% (April-2020), 4.8% (February-2020), 60.7% (January-2019), -13.8% (October-2018), 37.3% (April-2018), 9.6% (February-2018), 18.3% (July-2017), 12.7% (March-2016), 33.4% (August-2015), 12.7% (February-2015).

Historical Chart:

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Summary:

NamePROSHARES ULTRAPRO QQQ
ViewUp
Star (1 to 10)8.2
Target+15.5%
Time3 months
Hit Rate90%

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