ProShares UltraShort Technology ETF
) - This inverse exchange-traded fund (ETF) seeks to return twice
the inverse of the daily performance of the Dow Jones U.S.
Technology Index .
REW has been in a bull channel since early May. The top of the
channel is at just over $26 with support at around $21.
Yesterday's breakdown by the technology sector will likely
bring in more sellers today and, thus, another advance for the
The gap that resulted from yesterday's panic need not be
closed in order for the trend to continue, so if you intend to
trade REW, a half position could be bought now with the intent of
adding on a pullback or a further breakout.
Keep in mind that this leveraged ETF carries greater risk than
an ordinary ETF, so investors should use stop-loss orders.
The SEC has determined that "ultra funds" are not good
long-term investments and that they are most appropriate for
short-term trades. The margin requirement for most leveraged ETFs
If you have questions or comments for Sam Collins, please
e-mail him at
Buy Agilent Technologies Sept 29 Puts
Chasing All-Time Highs in Netflix
Meltdown is Possible, According to Technical
Your Guide to Profiting From Asia's Explosive Growth
For access to the best-kept secrets about investing in
China and the rest of Asia, plus the hottest stocks to buy and
sell, sign up now for Robert Hsu's FREE Investing Newsletter,
Asia Insider. It's sent right to your e-mail inbox every week -