ProShares UltraShort Semiconductors ETF (NYSE: SSG) — This ETF seeks daily investment results that are twice the inverse of the daily performance of the Dow Jones U.S. Semiconductor Index.
After falling from a high of over $90 in February 2009, this inverse ETF appears to be forming a solid bottom.
In early May, SSG broke through its bearish resistance line, and for four months, it has been consolidating between $15 and $19 under a compound top.
A break through the top in early August drove SSG to the $21 zone, but it quickly reversed and fell to the important support line at the 50-day moving average.
If the market fails to break out above the double-tops described in today’s Daily Market Outlook, then SSG could be a good bet for a run to $22 to $24.
Keep in mind that this “ultra” ETF is very speculative, as leveraged ETFs entail unique risks over periods as short as a single day.
The SEC warns that they are not suitable for all investors, especially long-term investors. Results can be affected substantially by compounding, and returns over longer periods will likely differ in amount and even direction, so these products require active monitoring and management.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
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