ProShares UltraShort Russell2000 Value ETF (NYSE: SJH) — This fund seeks daily results, before fees and expenses, that correspond to twice the inverse of the daily performance of the Russell 2000 Value Index (AMEX: RUJ).

The recent market decline has had a strong focus on financial instruments, which comprise 80% of the assets of the Russell 2000. This leveraged ETF could be an effective tool to profit from further downside in those stocks. 

On May 13, I targeted SJH for a quick trade to $22 to $25. But now, with the broad market on the verge of a major breakdown, I’m raising the target to $28 to $32. 

Note the huge accumulation, a new stochastic buy signal, and the penetration of the bearish resistance line.

This is a speculative, leveraged ETF that is primarily suited to day trading. Be sure to check for any special margin requirements and, recognizing the high risk of this trade, place a stop-loss order at the time of execution.

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net. 

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