ProShares UltraShort FTSE/Xinhua China 25 (
This exchange-traded fund (
) seeks daily investment results, before fees and expenses, that
correspond to twice the inverse of the daily performance of the
FTSE/Xinhua China 25 Index.
FXP appears to be executing a saucer bottom. In late December,
crossed above the 50-day moving average, which gave a trading buy
signal and resulted in a gain of more than 30%.
Now the stock has executed a breakaway gap through its 50-day
moving average. This is a powerful buy signal with supporting
volume and a trading target of $53.
A word of caution: This fund is for traders only. Because it is
constructed to move at twice the inverse rate of the underlying
investment, it carries greater risk than an ordinary ETF, so
investors should use stop-loss orders.
Also, the SEC has determined that "ultra funds" are not good
long-term investments and that they are most appropriate for
short-term trades. The
for most leveraged ETFs is 100%.
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