Stocks to Buy after June 20th (SSO, UYG, ITB)

Wine and Cheese - Big Pic

What to buy so you may reap the rewards from those that sold Thursday.

Thanks to today's decline we recommend going long on the S&P 500, U.S. Financials, and U.S. Homebuilders.  That means buying up ProShares Ultra S&P500 (SSO), ProShares Ultra Financials (UYG), and the iShares Dow Jones US Home Construction (ITB).

 

Thanks to the wicked 2%+ loss in the major indexes on June 20th Mastery is betting on these 3 ETFs for a comeback.  Everyone lost money today and rather then pick stocks we are going with sectors.  These 3 sectors have the most to gain should the economy continue to slowly improve.  The Talking Heads believe the U.S. is on the right track and slow growth is in full effect.  The ETFs the Masters plan on buying are the SSO, UYG, and ITB.  Recall that the home builders and banks have brought us back from the 2008 brink.  These names will continue to prosper but we prefer to go with the ETFs rather then risk individual stocks.

The S&P 500 has lost 3.7% of its value since Wednesdays close.  To think that it won't bounce back is insane.  Friday will be a dead cat bounce for the S&P which is why the SSO is a great play.  Thursday's 2% massive selloff was the worst performance for the Dow Jones and S&P 500 year-to-date. Do you really think the pullback will continue?

As we head into Friday morning U.S. futures are trending slightly up. This is good news for longs, we don't expect the Bears to continue the win.  The lastest according to Bloomberg.

Index Future Future Date Last Net Change Open High Low Time
Dow Jones Indus. Avg Sep 13 14,709.00 +8.00 14,700.00 14,716.00 14,699.00 20:59:32
S&P 500 Sep 13 1,584.60 +0.70 1,585.60 1,586.00 1,583.00 20:59:32

ETFs OF INTEREST

ProShares Ultra S&P500 (SSO) is trading at $75.95 and its shares are 33% from its 52-week low.

ProShares Ultra Financials (UYG) is trading at $ 89.78 and its shares are 14% from its 52-week high.

iShares Dow Jones US Home Construction (ITB) is trading at $22.34 and its 17% below its 52-week high.

SSO

UYG

ITB