Your Next Chance to Short the Emerging Markets

By Sam Collins,

Shutterstock photo


ProShares UltraShort MSCI Emerging Markets (NYSE: EEV ) -- This inverse exchange-traded fund ( ETF ) seeks daily investment results that correspond to twice the inverse of the daily performance of the MSCI Emerging Markets Index.

EEV Chart

Chart Legend  

On May 11, at $52.26, I said , "A further decline in the market could swiftly close the gaps for a quick 7-point trade.

"Keep in mind that leveraged ETFs carry greater risk than ordinary ETFs, so investors should use stop-loss orders."

EEV ran to over $66, closed all open gaps, and pulled back to just above its 50-day moving average at $53. 

A series of new buy signals, along with extraordinary accumulation, give investors an excellent chance for another trade -- this time to over $65. 

But remember, the SEC has determined that "ultra" funds are not good long-term investments and are most appropriate for short-term trades. 

If you have questions or comments for Sam Collins, please e-mail him at .

Related Articles:

The Best-Kept Secrets at Vanguard are Revealed
If you're ready for the inside help that gives you special advantages over other investors at Vanguard, sign up now for Dan Wiener's free online newsletter, Fund Focus Weekly . Each week you'll get independent information on Vanguard's best mutual funds to buy and sell, advance announcements of new funds, changes in management, plus much more! Sign up and get started today.

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: EEV , ETF

More from Sam Collins


Sam Collins

Sam Collins

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by