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January 5, 2009
Trade of the Day: SDS Could Soar 10 Points if Market Tests Lows
February 06, 2008By Sam Collins
UltraShort S&P 500 ProShares (SDS) -- This Exchange-Traded Fund (ETF) seeks investment results, before fees and expenses, that correspond to the inverse of the daily performance of the S&P 500 index. The fund normally invests 80% of assets in financial instruments with economic characteristics that should counter those of the index.
For those with the fortitude and speculative bent for shorting, but who want to avoid some of the risks and costs of a short sale, the SDS might provide a trade of another 8-10 points from yesterday's close. If the S&P 500 (SPX) breaks below the January lows, it could result in a longer-term, high-percentage return.
Sam Collins is ChangeWave's Chief Technical Analyst and a Registered Investment Adviser who manages portfolios for a fee. He can be reached at samailc@cox.net.
