“ProShares UltraShort SmallCap 600 (NYSE: SDD) – This inverse ETF is composed of financial instruments with economic characteristics that should correspond to twice the inverse daily performance of the S&P SmallCap 600 Index (SML).  Since the bottom of the recent bear market in March 2009, this contra ETF sold at over $120 and then fell to a recent low of $16.97 on May 6, 2010. But now, with the possibility of a significant correction in small-cap stocks at hand, this ETF could give traders a quick, 4-point trade,” Sam Collins Reports From Options Zone.

Collins goes on to say, “Note the pending stochastic buy support by a Collins-Bollinger Reversal (CBR) buy signal (our proprietary indicator) and strong accumulation since early last week. 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. ”

 

 

ProShares UltraShort SmallCap600 (NYSE:SDD)

The investment seeks daily investment results, before fees and expenses, which correspond to twice the inverse of the daily performance of the S&P SmallCap 600 index. The fund normally invests 80% of assets in financial instruments with economic characteristics that should be inverse to those of the index. It may employ leveraged investment techniques in seeking its investment objective. The fund is nondiversified.

 

Related posts:

1. What Went Wrong With Hong Kong Small Caps? (EWH, HKK, HAO, EEM, VWO)
2. ProShares UltraShort Euro ETF Has Been Consolidating In A Tight Trading Range (EUO, QQQ, SPY, DIA, IWM)
3. Trading ETFs: Buying Leveraged Small Cap & Opportunities In Tech? (TNA, IXN, XRT, SPY, DIA, IWM, QQQ)

SDD