AI
Thursday, September 22, 2011 4:41:08 PM
Shorting the New Global Economy
Everything American is down today. The Dow, the Russell 2000, the Nasdaq, the Transports. At this point, most are testing critical support levels. The NYSE Composite Index, however, has fallen so far as to have clearly violated support.
International iShares are down in lockstep with American markets as well, today.
As of 3:30, even silver (SLV) had broken through its $35.00 support level. You've got to get a little bit nervous when a precious metal crashes through support along with the broader market, because it generally doesn't happen that way.
For a couple of days, I've been thinking out loud in this forum about going long in a short market with inverse ETFs. Right now, I'm wishing that I'd have taken my own advice, cashed in my entire portfolio, and loaded up on these things.
Up until about three years ago, FXI was the way to play China. People literally doubled and tripled their money on that play until the chart went parabolic, telling technical traders that a bubble was about to burst. Today, FXP, the ProShares UltraShort FTSE China 25, seems to be the better play.
RUSS, the Direxion Daily Russia Bear 3X Shares, looks rather attractive as well for playing shorter term swings.
BZQ, ProShares UltraShort Brazil, looks as if it's breaking out of an extended base as well.
Then there is the Direxion Daily Latin America Bear 3X Shares (LHB) which tracks (in reverse, and with leverage) “emerging markets” in Latin America that up until a couple of years ago were all the rage.
FAZ, the financial bear, did rather well today. Damn, this ETF has an almost uncanny ability of predicting major market turns!
At this point, I'd say that anything is possible in the overall markets. I'm buckling my seat belt for Mr. Toad's Wild Ride, and restructuring my portfolio completely to allow for more short-term swing trades involving leveraged ETFs.
Everything American is down today. The Dow, the Russell 2000, the Nasdaq, the Transports. At this point, most are testing critical support levels. The NYSE Composite Index, however, has fallen so far as to have clearly violated support.
International iShares are down in lockstep with American markets as well, today.
As of 3:30, even silver (SLV) had broken through its $35.00 support level. You've got to get a little bit nervous when a precious metal crashes through support along with the broader market, because it generally doesn't happen that way.
For a couple of days, I've been thinking out loud in this forum about going long in a short market with inverse ETFs. Right now, I'm wishing that I'd have taken my own advice, cashed in my entire portfolio, and loaded up on these things.
Up until about three years ago, FXI was the way to play China. People literally doubled and tripled their money on that play until the chart went parabolic, telling technical traders that a bubble was about to burst. Today, FXP, the ProShares UltraShort FTSE China 25, seems to be the better play.
RUSS, the Direxion Daily Russia Bear 3X Shares, looks rather attractive as well for playing shorter term swings.
BZQ, ProShares UltraShort Brazil, looks as if it's breaking out of an extended base as well.
Then there is the Direxion Daily Latin America Bear 3X Shares (LHB) which tracks (in reverse, and with leverage) “emerging markets” in Latin America that up until a couple of years ago were all the rage.
FAZ, the financial bear, did rather well today. Damn, this ETF has an almost uncanny ability of predicting major market turns!
At this point, I'd say that anything is possible in the overall markets. I'm buckling my seat belt for Mr. Toad's Wild Ride, and restructuring my portfolio completely to allow for more short-term swing trades involving leveraged ETFs.
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