Dear ETF Subscriber:

An increasing amount of evidence suggests that consumers will continue to rein in their spending over the coming months. For example, household net worth has fallen during each of the past three quarters and consumer debt versus their income is near historic highs. In addition, the U.S. Department of Labor reported this morning that first-time claims for unemployment benefits continued to trend higher last week, rising to the highest level since March 2002.

Meanwhile, even the world’s largest discount retail chain-store, Wal-Mart, announced early this morning that it failed to meet Wall Street analysts’ sales projections for the month of July. Perhaps more importantly, the company forecasts slower sales growth for the next two quarters.

I therefore advise those of you who follow my aggressive portfolio recommendations to buy the ProShares Ultra Short Consumer Services (SCC). The fund seeks investment results that correspond to twice the inverse of the daily performance of the Dow Jones U.S. Consumer Services Index. The index’s component companies include airlines, broadcasting and entertainment companies, apparel and broad-line retailers, food and drug retailers, media agencies, publishing companies, casinos, hotels, restaurants and bars, and travel and tourism companies. Its top holdings include Wal-Mart, Home Depot, and Lowes.

However, I recommend that you pay no more than $95.75 for this ETF, given that its trading activity is very volatile, getting in at the right price in SCC is of utmost importance. In the event that SCC gaps up this morning above $95.75, I recommend that you wait for it to pull back in price by placing a limit order of $95.75 on SCC.

For our conservative portfolio investors, please take no action at this time.

As always, please don’t hesitate to email us at ETFStrategist@newsmax.com if you have any questions concerning The ETF Strategist

Sincerely,

David N. Frazier

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