SpeculatingStocks.com Announces Two Possible Ways to Play a Reversal in the Stock Market

SpeculatingStocks.com announced two possible ways to play a possible reversal in the stock market including the ETF’s: QQQQ and DGP.

November 21, 2008 — 12:01 AM — SpeculatingStocks.com has announced two possible ways to play a reversal in the stock market. SpeculatingStocks.com is drawing on its experience in the stock market of providing stock picks, stock market commentary and market analysis. The NASDAQ has finished in the red ten out of the past twelve trading days and has now dropped below an RSI of 30, indicating an oversold condition for the exchange as a whole. We believe we will see a reversal in the NASDAQ in the very near future.

Investors are looking for a solid way to take advantage of a possible up spike in the NASDAQ exchange and the stock market as a whole. We are stepping away from our usual discussion of penny stocks and focusing on two Exchange Traded Funds (ETFs).

An Exchange Traded Fund (ETF) is a security that tracks an index, but trades like a stock on an exchange. SpeculatingStocks.com founder Russ Urban commented, ETF’s can be great investment opportunities, especially during these times, instead of investing directly into a NASDAQ stock or gold stock, for example.

The exchange traded fund that SpeculatingStocks.com has set its eyes on is the QQQQ as a possible way to play a possible reversal in the stock market. The QQQQ is the ticker symbol for the NASDAQ 100 Trust, tracking the tech sector, consisting of the 100 largest and most actively traded non-financial stocks on the NASDAQ. The QQQQ is an exchange traded fund.

The QQQQ has traded down from over $47 in early September to a price of around $25.50, currently. If an investor is comfortable with the risk, they may decide to play the QQQQ options for additional leverage and additional possible gains. After a bottom in the NASDAQ exchange, many of the future long-term gains are made in the first few days or weeks of a turn around, so it is important to be positioned in a financial device like the QQQQ.

Another exchanged traded fund (ETF) that SpeculatingStocks.com has set its eyes on is the DGP (PowerShares DB Gold Double Long ETN) as a possible way to play a reversal in the gold market and stock market. We expect gold prices to appreciate with a possible stock market reversal. Stock market losses have weighed on gold prices. It is speculated that the gold index and gold stocks will be major winners over the next few years.

DGP shares are designed to follow gold prices. DGP was recently trading near $22 before dropping to as low as $12 as gold prices per ounce dropped from over $900 to around $725. We believe gold prices will reverse and the DGP has the ability to act as a great investment device to leverage an upswing in gold.