It's Not Too Late To Go Short
by Jim Woods 11/19/08
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Ultra Short S&P 500 ProShares (SDS)
This ETF seeks performance results that correspond to twice the inverse of the daily performance of the S&P 500 Index (SPX). That means that if the S&P 500 falls 2%, SDS will rise 4%.
This is a great ETF if you're betting on more pain in the overall equity market.
But if you want to be a little more focused with your bets, you can go with two of the biggest losing sectors of 2008 -- real estate and financials.
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Houghton and Atkeson
Looking into June, the market should begin refocusing on upcoming earnings reports for evidence the economy is gaining momentum.
Watching the Treasury's Actions
In the short-term, the government's bond auction is likely to be a key driver of stocks.
Treasury Auction Boosts Market
The Treasury's auction of two-year notes brought an upside surprise which should alleviate fears of a lack of demand for U.S. paper.
Credit Markets Point to Upturn
The credit market, a reliable indicator of equity direction, suggests we will break out of the SPX's trading range to the upside.
The market seems to be saying that a 30% move up from the lows is ahead of the real economy and the market needs to allow the economy to catch up.
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