SELL ULTRASHORT S&P500 PROSHARES (SDS) Stock Pick Analysis by MackTheKnife on People & Picks

S&P 500: 1,340.35 Change: -0.84%

vip

P&P Score: 99.12 | Points: 103.40 | Accuracy: 73.48 | Average Pick Score: 1.44 Annual Return: N/A

Commentary

SELL: ULTRASHORT S&P500 PROSHARES (SDS) Rating: 1

Start Price:	$39.24
Points:	+10.53
Created:	10/29/2009

The ProShares UltraShort S&P500 (SDS) exchange-traded fund appears close to ready for a Shampoo trade on the short side, although the Standard & Poor's 500 (SPX) could experience a reaction tomorrow to the action today.

7 Comment(s):

Author

MackTheKnife Date

Date

2009-11-11 10:07:58

It is time for an Exodus here . . .

Author

MightyMo

Date

2009-11-11 15:34:05

It does seem better to short the reverse etf in lieu of buying the etf long complement....can do the same with FAZ..

Author

MightyMo

Date

2009-11-11 15:44:01

Exodus???

Why jump off a winning horse?

Author

TickerBandit Date

Date

2009-11-11 16:48:05

Bob Marley !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Author

MightyMo

Date

2009-11-11 18:19:14

NO WOMAN NO CRY !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Author

MackTheKnife Date

Date

2009-11-12 06:58:20

Howdy, MightyMo!

It does seem better to short the reverse etf in lieu of buying the etf long complement....can do the same with FAZ.

I believe it may be more profitable to be short of a leveraged exchange-traded fund than it is to be long of it in certain cases (most likely associated with high volatility in the market), especially when the holding period is measured not in hours or days but in weeks or months, regardless of whether the ETF is bullish or bearish in its design. However, I have not carried out a sufficient number of comparative historical statistical studies to move this belief from the realm of opinion to the realm of fact.

Exodus?///Why jump off a winning horse?

My sense of the statistics associated with the 2009 bull market has me anticipating the Standard & Poor's 500 (SPX) may attain the peak in its current oscillation either this week or next week (an options-expiration week). It also has me expecting the S&P 500's highest level during this movement may be in the range between about 1,110.00 and and about 1,130.00. Accordingly, I am happy with my gain of 10.52 P&P points on this short position in SDS, especially as I continue to have a long position in SSO in the same portfolio.

Good luck!

MackTheKnife

Author

MackTheKnife Date

Date

2009-11-12 07:03:16

Howdy, TB!

Bob Marley!

Stir It Up (http://tinyurl.com/rdczh) . . .

Good luck!

MackTheKnife

Want to comment on this post? Sign up now. It's FREE!
Already registered? Log In.

register

Sponsored Links

Take advantage of quick short-term moves, and profit from price moves in any direction. Trade options under the direction of an expert guide. Try it now and get a 90-day unconditional money-back guarantee. 50% OFF for a limited time! Zacks Options Trader >>

Zacks Top Ten Stocks for 2011 are now available! This 10-stock portfolio is a well-balanced mix of aggressive and conservative, large and small cap, growth and value. Buy them. Hold them. Watch your gains add up

No Stocks are Harder to Find, or More Worth the Effort.
They have the greatest potential for quick gains, but they're also the most difficult to find and time correctly. Now Zacks has perfected a system for identifying and profiting from turnaround stocks just as they begin a powerful rebound. Learn more here >>.

Find Winning Stocks Quickly with Research Wizard, a powerful desktop software program. Start with easy-to-use pre-loaded strategies, then develop your own. Backtest against years of historical data to see how your approach works in any market. Start a Free Trial Today >>

Make Big Bucks promoting Zacks products on your website! Click here to Learn about Zacks' Affiliate program.

Ride Momentum Stocks to Quick Gains!
The market is finally breaking out, creating the perfectd wave for investing in momentum stocks. Zacks is the king of fundamental analysis, but this service also uses technical indicators for the best possible timing. Click here to learn more >>.