Oil Is King

Money can be made even in the terrible current stock market where we are seeing more downside than upside. The financial conditions and unemployment of the U.S. and the world will assure that the stock market has limited gains. We are basically in a bear market where there will be multiple rallies many times during the year. If you make 10 to 20% per month on these rallies, you will make more than 100% for your money each year.

ERX, Direxion's 3X Energy Bull ETF, has shown a very dependable trading range in the past six weeks. It has traded in the range of 40 to 48 (plus or minus some) a number of times during the past several weeks. If you simply buy it in the low forties and sell when it reaches 48, you can make 10-20% every week or two. This is the way to make a fortune in the stock market predictably!

Since oil is the core of ERX, you can always count on it rising from wherever the stock market might drop it. Oil is the most valuable commodity in the world, and we cannot do without it. Sure, we may have intermittent demand pullbacks, but eventually demand will be greater than the supply, and prices will go up. For every 1% oil rises, ERX rises 3%. This is why 20% gains can be made often by owning this stock. Simply sell most of your shares every time the stock reaches $48. You could also hold some shares indefinitely since ERX will most likely make it back to more than $80 per share sometime in the next six months.