ProShares Ultra Russell 2000 Value ETF (NYSE: UVT) — This leveraged exchange-traded fund (ETF) seeks daily investment results that correspond to twice the daily performance of the Russell 2000 Value Index.
UVT has rallied from a major support line at $19 four times since December.
On Wednesday, it performed a “daily reversal” and followed through on Friday with a higher close, and its stochastic issued a short-term buy signal.
The target for a trade in UVT is $22 to $24.
UVT is for traders only. The SEC has determined that “ultra” funds are not appropriate long-term investments and that they are designed for short-term trades.
UVT carries greater risk than an ordinary ETF, so traders should use stop-loss orders. Finally, the margin requirement for most leveraged ETFs is 100%, but check with your broker before entering an order.
If you have questions or comments for Sam Collins, please e-mail him at email@example.com.
Your Guide to Profiting From Asia’s Explosive Growth — For access to the best-kept secrets about investing in China and the rest of Asia, plus the hottest stocks to buy and sell, sign up now for Robert Hsu’s FREE Investing Newsletter, Asia Insider. It’s sent right to your e-mail inbox every week — absolutely FREE!