Tuesday, September 21, 2010

Ultra Silver ETF - AGQ - added

I added ProShares Ultra Silver ETF (AGQ) to the Van Meerten New High portfolio, The ETF seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of silver bullion as measured by the U.S. Dollar fixing price for delivery in London. This is a pure price play on the prices of precious metals and will be sold if it doesn't pan out.

If I look at the general sentiment as measured on Motley Fool the CAPS members think the ETF will outperform the market by a vote of 92 to 51 with the All Stars in similar agreement with a vote of 36 to 25. Not an overwhelming vote but positive none the less.

I'm really looking at the technicals over on Barchart. The 13 technical indicators give a 96% buy signal with the ETF moving up in 17 of the last 20 sessions. The ETF recently traded at 74.78 well above its 50 day moving average of 62.91. The price has moved up 30.10% in the last month and has a Relative Strength Index of 72.06% and rising.

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.

Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.

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