Macro Economic Plays
Long the Ultra QQQ ProShares ETF (QLD) and Short the SPDR
Gold Shares (GLD)
Long the Ultra QQQ
ProShares ETF (QLD)
Traded Fund (ETF) trade is a double of the Top 100 Nasdaq stocks and therefore
attempts to double the performance of the Nasdaq 100 Index. With the current
trend of the markets moving higher, this is a macro economic play on the
recovery of stocks. Staying with the technology weighted NASDAQ removes any
downward pressure that could be felt from financials moving forward.
holdings include future options and swaps of the Nasdaq 100 in addition to a
heavy weighting in Apple (AAPL) and lighter weightings in names such as Cisco
Systems (CSCO), Gilead Sciences (GILD) and Google (GOOG) to name a few.
Short the SPDR Gold
trade is a macro economic play of the recovery of the dollar, but more
specifically the decline in the value of gold. The ETF attempts to match the
value movements of gold bullion. The past week saw the ETF drop from above $84
a share down to $78. Since mid-July the ETF has been falling on a regular basis
but is still well above its 52 week low of $64.50.
needing to lower interest rates due to their weakening economy, the US Dollar
should continue to rally. The US Dollar rally is bearish for gold and thus the
drop in GLD is anticipated.