Your Next Chance to Short the Emerging Markets

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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.

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 samailc@cox.net .

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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 , Stocks

Referenced Stocks: ETF

Sam Collins

Sam Collins

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