A Supercharged Emerging Markets Trade

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  Direxion Daily Emerging Markets Bear 3X Shares ( EDZ ) -- This investment seeks to replicate, net of expenses, 300% of the inverse daily performance of the MSCI Emerging Markets Index. EDZ is a trader's choice to participate in the falling emerging markets.

EDZ Chart  

Chart Legend

Yesterday's gap up on huge volume through a double-top has an initial target of $7.45, but could quickly run to $10 if the financial crisis in the emerging market economies turns even more sour. 

As with all inverse ETFs, always use stop-loss orders to protect against a violent move down (i.e., good news for the sector). 

Note: This is a high-risk trading idea and not appropriate for hedging long-term portfolios.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas

Referenced Stocks: EDZ

Sam Collins

Sam Collins

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