Heavy Accumulation Seen In This Short Consumer Goods ETF (SZK)

“The ProShares UltraShort Consumer Goods ETF (NYSE:SZK) — This exchange-traded fund (EFT) seeks to mirror twice the inverse of the daily performance of the Dow Jones U.S. Consumer Goods Index. Recent economic reports indicate that consumer confidence is falling, so this reverse ETF should advance as the retail group falls.  A huge saucer formation is evident with a possible breakout at just over yesterday’s close at $42.60. Heavy accumulation has accompanied the recent advance, and even though the index is somewhat overbought, a breakout could take prices much higher. Buy on a breakout above $43 with a target of $50,” Sam Collins Reports From OptionsZone.

Collins goes on to say, “A word of caution: This “ultra fund” is for traders only. The SEC has determined that they are not good long-term investments and are most appropriate for short-term trades. Because it carries greater risk than an ordinary ETF, traders should use stop-loss orders. Finally, the margin requirement for most leveraged ETFs is 100%, but check with your broker before entering an order.”

 SZK Stock Chart

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