POS Experiences Whipsaw for First Trade in 2016

The POS signaled to close the LONG trade from May, 2nd, selling at the close on May, 12th. The hypothetical results of the trade for trading UPRO are a return of -2.2%. If one traded SPY, the return would be about -0.7%.

Keep in mind that the POS moves similarly to a stochastic momentum indicator, so the strength of recent historical moves greatly effects what sort of price action will produce signals in the future. This feature respects the assumption that current momentum is related to future momentum. This principle can obviously be disagreed with and is not always historically true, but keep in mind that the POS is dependent on such an assumption, as it works well in trending markets.