Smart Short Play: Ultra Short Tech ProShares
by Sam Collins 03/17/09
Ultra Short Technology ProShares ETF (REW) -- This Exchange-Traded Fund (ETF) seeks daily investment results that correspond to twice the inverse of the daily performance of the Dow Jones Technology Index.
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This non-diversified fund, which normally invests 80% of assets in technology stocks, benefits if technology stocks fall and is, thus, a substitution for shorting those stocks.
Note the "W" base and the trading gap at $89 to $104, which was partially closed when the ETF ran to $104 on March 9.
Yesterday reversed a near-term correction and resulted in the stochastic falling into oversold status. A purchase at $75 could yield a trade to $100.
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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.
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