ProShares UltraPro QQQ [TQQQ] Stock Forecast

TQQQ provides 3x 1-day returns of the Nasdaq 100 Index. Daily rebalancing of exposures can introduce significant tracking error over the long run.

The TQQQ surged more than 37% from our previous article before the market digested its gains from August highs. However, we surmise the pullback is healthy. Therefore, we believe another fantastic opportunity to add the TQQQ has returned. We assessed that the TQQQ could form a bottom at the current levels, constructive for further recovery.

Purchase levels of the largest ProShares ETF (TQQQ) and the largest ProShares short ETF strongly indicate a new bull market. We'll show why it's a positive indicator that outstanding shares of TQQQ are near record levels.

One single-stock ETF accounts for 97% of daily trading volume in the category.

The market invalidated our previous Buy thesis on the TQQQ initially in June. However, it quickly stanched its steep sell-off before recovering and revalidating our original view. Therefore, the re-entry signal has strengthened the conviction of our Buy rating. We also observed robust medium- and long-term bottoming signals, which suggests solid buying support.

A lot of assets under management doesn't always correspond to a deep and liquid options market.

Top Performing Levered/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Professional gamblers love to say that if you find gambling exciting, you are doing it wrong. The same wisdom applies to investing, especially with leveraged funds such as the ProShares UltraPro QQQ ETF (TQQQ).

TQQQ continues to bounce around as the broader market has remained volatile. I still think the valuation for the majority of the largest components of TQQQ is too rich to offer a margin of safety.

QQQ is a passively managed play on the Nasdaq-100, whereas TQQQ is a highly levered play on the same index. The article picks out the differing qualities of both products and primarily focuses on the risks involved with the latter.