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. And on June 8, I said, “Now, with the broad market on the edge of a major breakdown, the target is raised to $28 to $32. Note the huge accumulation, a new stochastic buy signal, and the penetration of the bearish resistance line.”
The target is still $32, but note that the market is currently oversold and due for a bounce. It would be prudent to take profits here and wait for a better buying opportunity.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
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