ProShares UltraPro S&P Price, Forecast, Insider, Ratings, Fundamentals & Signals

The stock market, as measured by the S&P 500 Index SPX, continued to sell off through the end of last week. By that point, some relatively deep oversold conditions were in place, and the market rallied this week in an attempt to work them off.

The S&P 500 Index closed above 5,200 for the first time ever, following the Fed's signal to cut interest rates. This will mark the end of the most aggressive Fed hiking cycle and fuel corporate profits.

UPRO is a triple-leveraged ETF that aims to deliver three times the daily return of the S&P 500, but it comes with high volatility and drawdown risks. Despite the risks, owning UPRO can be a strategic way to ride the stock market rally while protecting against significant losses. By allocating a portion of a portfolio to UPRO and cash, investors can effectively "delever" and emulate the performance of the S&P 500 while minimizing downside exposure.

Using The 4x SPX Fund XXXX To Build A 'Smart' Portfolio

We take a look at the 10 biggest and most popular ETFs for those investors who are new to the leveraged technique.

We take a look at the 10 biggest and most popular ETFs for those investors who are new to the leveraged technique.

As the S&P 500 embarks on its bull market journey, driven by the optimism surrounding AI and expectations of Federal Reserve interest rate cuts, investors remain cautiously optimistic, closely watching corporate earnings reports and external factors that may influence market dynamics.

The S&P 500 was up about 24% in 2023 due to cooling inflation, a less-hawkish Fed, an AI boom, a tech rally and an improvement in corporate earnings. The index may go up by a single-digit in 2024.

Thirteen months ago, we recommended buying ProShares 3X fund UPRO based on signals of the end of the bear market. However, the strong buy signals of last year are fading as we enter 2024, suggesting reducing leverage by selling UPRO and buying SPY. The caution of reducing leverage is advised as both sentiment swings towards "too many bulls" and buying activity in UPRO declines.

The ProShares UltraPro S&P500 ETF aims to deliver 3x the one-day returns on the S&P 500 Index. Levered ETFs like UPRO have positive convexity and volatility decay, causing them to deviate significantly from their underlying indices over time. Nimble traders can take advantage of positive convexity and use levered ETFs as swing trading instruments.