ProShares UltraShort MSCI Emerging Markets (NYSE: EEV) — This inverse exchange-traded fund (ETF) seeks daily investment results that correspond to twice the inverse of the daily performance of the MSCI Emerging Markets Index.
On May 11, at $52.26, I said, “A further decline in the market could swiftly close the gaps for a quick 7-point trade.
“Keep in mind that leveraged ETFs carry greater risk than ordinary ETFs, so investors should use stop-loss orders.”
EEV ran to over $66, closed all open gaps, and pulled back to just above its 50-day moving average at $53.
A series of new buy signals, along with extraordinary accumulation, give investors an excellent chance for another trade — this time to over $65.
But remember, the SEC has determined that “ultra” funds are not good long-term investments and are most appropriate for short-term trades.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
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