Short the Market With This ETF

By Sam Collins,

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ProShares UltraShort S&P 500 ( SDS ) -- This exchange-traded fund ( ETF ) seeks daily investment results, before fees and expenses, that correspond to twice the inverse of the daily performance of the S&P 500 Index ( SPX ).  

SDS Stock Chart  

Chart Legend  

We've mentioned this fund several times with little success because the market continued higher. However, now could be the time to jump on this volatile double-inverse fund. 

If the S&P 500 falls under 1,175, and then 1,150, SDS could make a quick run to $36-$38.  

This leveraged ETF carries more risk than an ordinary ETF, so investors should use stop-loss orders. And the SEC has determined that "ultra" funds are not good long-term investments, and that they are most appropriate for short-term trades. 

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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 Nasdaq, Inc.

This article appears in: Investing Investing Ideas
Referenced Stocks: ETF , SDS

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