Core Portfolio (20 Jan 17)

A long-term investment that forms the foundation of an investor’s portfolio.  A core portfolio strategy is to primarily own an investment that tracks the overall market.  A solid core holding gives an investor the flexibility to take a chance with riskier investments in other areas of the portfolio.

Calendar Year	Dow 30 (UDOW)	Nasdaq 100 (TQQQ)	S&P 500 (UPRO)	Russell 2000 (URTY)
2017	0.7%	12.1%	4.0%	-1.8%
2016	47.5%	11.4%	30.8%	60.1%
2015	-8.6%	17.2%	-5.2%	-21.0%
2014	26.0%	57.1%	38.0%	5.9%
2013	107.1%	139.7%	118.5%	147.9%
2012	26.4%	52.3%	46.8%	44.6%
2011	9.1%	-8.0%	-11.9%	-37.6%
2010	51.4%	78.1%	36.3%	90.1%
Avg Ret.	32.5%	45.0%	32.2%	36.0%

A properly constructed core portfolio of leveraged ETFs will tend to outperform the benchmarks.  A core portfolio strategy also results in a portfolio that is easy to monitor and rebalance because it only contains a few investments.

Short-Term Trend (20 Jan 17)

When the stock trades above the 20-SMA, it is considered to be in a short-term uptrend.  When it trades below the 20-SMA, the short-term trend is considered down.

Benchmark	Symbol	Price	20-SMA	Market Trend
S&P 500	SPY	226.74	226.01	Uptrend
Dow 30	DIA	197.96	198.37	Downtrend
Russell 2000	IWM	134.44	135.57	Downtrend
Nasdaq 100	QQQ	123.25	121.40	Uptrend

If the short-term trend is up, use bullish leveraged ETFs.  If the short-term trend is down, use inverse leveraged ETFs.

Leveraged ETFs (20 Jan 17): SOXL $61.31

Buy (40) shares SOXL @ $61.31
Target Price (10%): $67.50

Leveraged ETFs (20 Jan 17): RUSL $98.75

Buy (25) shares RUSL @ $98.75
Target Price (10%): $108.70

Leveraged ETFs (20 Jan 17): GUSH $98.43

Buy (25) shares GUSH @ $98.43
Target Price (10%): $108.30

Leveraged ETFs (20 Jan 17): FAS $41.10

Buy (60) shares FAS @ $41.10
Target Price (10%): $45.30

Leveraged ETFs (20 Jan 17): URTY $116.50

Buy (21) shares URTY @ $116.50
Target Price (10%): $128.20

Leveraged ETFs (20 Jan 17): TNA $99.52

Buy (25) shares TNA @ $99.52
Target Price (10%): $109.50

Core Portfolio (13 Jan 17)

A long-term investment that forms the foundation of an investor’s portfolio.  A core portfolio strategy is to primarily own an investment that tracks the overall market.  A solid core holding gives an investor the flexibility to take a chance with riskier investments in other areas of the portfolio.

Calendar Year	Dow 30 (UDOW)	Nasdaq 100 (TQQQ)	S&P 500 (UPRO)	Russell 2000 (URTY)
2017	1.5%	12.0%	4.5%	2.7%
2016	47.5%	11.4%	30.8%	60.1%
2015	-8.6%	17.2%	-5.2%	-21.0%
2014	26.0%	57.1%	38.0%	5.9%
2013	107.1%	139.7%	118.5%	147.9%
2012	26.4%	52.3%	46.8%	44.6%
2011	9.1%	-8.0%	-11.9%	-37.6%
2010	51.4%	78.1%	36.3%	90.1%
Avg Ret.	32.6%	45.0%	32.2%	36.6%

A properly constructed core portfolio of leveraged ETFs will tend to outperform the benchmarks.  A core portfolio strategy also results in a portfolio that is easy to monitor and rebalance because it only contains a few investments.

Short-Term Trend (13 Jan 17)

When the stock trades above the 20-SMA, it is considered to be in a short-term uptrend.  When it trades below the 20-SMA, the short-term trend is considered down.

Benchmark	Symbol	Price	20-SMA	Market Trend
S&P 500	SPY	227.05	225.85	Uptrend
Dow 30	DIA	198.70	198.71	Uptrend
Russell 2000	IWM	136.26	135.93	Downtrend
Nasdaq 100	QQQ	123.16	120.81	Uptrend

If the short-term trend is up, use bullish leveraged ETFs.  If the short-term trend is down, use inverse leveraged ETFs.

Leveraged ETFs (13 Jan 17): SOXL $60.34

Buy (41) shares SOXL @ $60.34
Target Price (10%): $66.40

Leveraged ETFs (13 Jan 17): RUSL $104.48

Buy (24) shares RUSL @ $104.48
Target Price (10%): $115.00

Leveraged ETFs (13 Jan 17): FAS $42.44

Buy (59) shares FAS @ $42.44
Target Price (10%): $46.70

Leveraged ETFs (13 Jan 17): URTY $121.85

Buy (20) shares URTY @ $121.85
Target Price (10%): $134.10

Leveraged ETFs (13 Jan 17): TNA $103.90

Buy (24) shares TNA @ $103.90
Target Price (10%): $114.30