Suggested to buy Preferred Dividend ETF PFF on a breakout from the flag pattern at (1). (see post here)
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PFF continues to move higher in a boring steady fashion, picking up almost 3% appreciation while paying a nice dividend stream in less than a month. PFF is now testing it highs reached last year. Yesterday the NYSE held on rising support. (see post here) That support should help PFF move above highs of last year.
Game plan…Continue to own PFF with a 2% stop!
Jerry…. I prefer the non-leverage ETF’s. It is not about being conservative, the leveraged ETF’s have pricing challenges than can work against investors. When I do suggest a leverage ETF it is due to the lack of a 1x or that the 1x is really small with no volume.
I am new to your site. Do you recommend leveraged ETF’s? i.e. EDZ, TZA, SPXU, etc or stay with a more conservative approach using RWM, SH, etc. Thanks for responding.
Chris…Great question. In past broad market declines PFF has declined and I PFF will decline again, when a broad market decline takes place! The upside breakout of the flag pattern in PPF, in my opinion, was a signal that stocks weren’t in as bad shape as many thought. Rrice action of PFF remains a positive. Should PFF price action decline, we have a trailing stop in place.
Given that the markets have the potential to fall here, how do you see PFF holding up if they do?