ProShares UltraShort MSCI Emerging Markets Fund (
This double inverse exchange-traded fund (
) seeks daily investment results that correspond to twice the
inverse of the daily performance of the MSCI Emerging Markets
This fund, which normally invests at least 80% of assets in
financial instruments with economic characteristics that should be
inverse to those of the index, should be used only by traders as a
bear market investment since its objective is to short stocks in
On Feb. 2, at $11.85,
, "Note that yesterday's [Feb. 1] is now above both the 20- and
-- a bullish signal for this ETF, but a bearish signal for the
"As an 'UltraShort,' or double inverse fund, it is constructed
to move at twice the inverse rate of the underlying investment.
Therefore, it has greater risk than an ordinary ETF, so investors
should use stop-loss orders when investing in it.
"The SEC has determined that 'ultra funds' are not good
long-term investments, and that they are most appropriate for
"The initial trading target is $14, but it could go higher."
On Feb. 5, EEV hit $13.88 but then succumbed to profit-taking.
Since it has pulled back to below our original buy point, a new
trade is suggested. Mt target remains $14.
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