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S&P 500: 1,340.35 Change: -0.84%
aaronapro
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Commentary
BUY: PROSHARES TR (TWM) Rating: 1
Start Price: $110.80
Points: -57.34
Created: 11/17/2009
I don't disagree that the market is likely to move up to 10,800 or 11,000 by the end of the year. That said, I also am looking for a correction; I have a GTC buy order for TWM at 26.45 and a second buy order at $26. TWM is an Ultrashort Russell 2000 ETF; it moves 2-3x the S&P: when the S&P goes up 1%, TWM goes down by 2-3% and vice versa. I believe $26-$26.50 is a good entry point; it is presently selling for $27.75 - I would not buy it at that price. If the market corrects by 10%, TWM should go up by 20% or more. This is a trading vehicle; I would recommend a sell at ~$31.50

1 Comment(s):

Author aaronapro     Date 2010-07-17 05:44:48
I am using TWM as a cushion for my long portfolio (MCD, BCOM, BAC, D) . I bought it a bit early, but am not disappointed since the market is very volatile and expected to remain so in coming months.
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