ProShares Ultra QQQ [QLD] Stock Forecast

The ProShares Ultra QQQ ETF is a leveraged exchange-traded fund designed to deliver twice the daily return of the Nasdaq 100-Index. Holding periods longer than one day can result in significantly different returns than the target return due to compounding. The fund's performance can deviate from the expected 2x return in volatile markets, leading to potential losses.

The AMI market risk indicator is risk-on since December 2. The NASDAQ 100 had a huge rally in January. After a five-week retreat in February, the rally resumed in the second week of March.

Each week, readers can see a few distinct tiers, from the Vanguards and BlackRocks of the world to the upstarts like Dimensional Fund Advisors and First Trust to a whole gauntlet of boutiques and specialist managers in the ETF Issuer League.

The space remains incredibly popular for investors looking to mint money in a very short period of time, provided the trend remains a friend.

We believe investor activity in QLD, as well as those in other leveraged ProShares ETFs, now point to a trading range market. Leveraged ETFs have greater risks of underperforming during trading range markets. This underperformance grows the longer the trading range lasts.

Since February 6th, 2010, QLD has generated an average annual return of 28.5%. Since January 1st, 2020, which includes two bear markets, it's up 28.9%.

High purchase levels in QLD usually occur at major lows in the market. The current level of buying may imply the bear market has further to go. However, the purchase levels and growth in shares outstanding of other ProShares funds seem to contradict this. This may also be an important clue.

QLD is a leveraged ETF that seeks daily investment results that correspond to two times the daily performance of the Nasdaq-100 Index. The vehicle is up +40% since the June lows in the stock market.

Amid huge volatility and uncertainty, the appeal for leveraged ETFs has been soaring although these products occupy a small slice of the ETF space.

The Nasdaq 100 entered bear territory amid Russia's invasion of Ukraine, but has been rallying as of late. Within the past month, the index is up close to 6%, but down about 9% for the year.

ProShares Ultra QQQ is a US stock and trading under the symbol QLD

ProShares Ultra QQQ stock price is $59.25 today.

Yes, ProShares Ultra QQQ is a publicly traded company.