Stock Picks – ProShares UltraShort S&P 500-SDS

ProShares UltraShort S&P 500 (SDS) – This exchange-traded fund (ETF) seeks daily investment results, before fees and expenses, that correspond to twice the inverse of the daily performance of the S&P 500 Index (SPX).  

We’ve mentioned this fund several times with little success because the market continued higher. However, now could be the time to jump on this volatile double-inverse fund. 

If the S&P 500 falls under 1,175, and then 1,150, SDS could make a quick run to $36-$38.  

This leveraged ETF carries more risk than an ordinary ETF, so investors should use stop-loss orders. And the SEC has determined that “ultra” funds are not good long-term investments, and that they are most appropriate for short-term trades. 

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