Protecting Profits With These Inverse ETFs (DXD, QID, SDS, TZA, TYP, DPK)

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September 14, 2010 8:25pm NYSE:DPK NYSE:DXD

“Stocks have staged a solid rebound in September, and the Dow is on pace to close its ninth positive session in the last ten trading days. While there are still plenty of attractive valuations, and M&A


 has stayed strong, traders can protect their recent gains from a short-term pullback by utilizing one of the many “reverse ETFs,” which are designed to track the inverse of a particular equity sector or benchmark,” The Tickerspy Staff Reports.

They go on to say, “The Leveraged ETFs Indexis composed of exchange-traded ways to make leveraged bets on or against the market. For hedging purposes, adding stakes in the Ultrashort Dow30 Proshares (NYSE:DXD), Ultrashort S&P500 Proshares (NYSE:SDS), or Ultrashort QQQ Proshares (NYSE:QID) can pare net long market exposure without rebalancing an existing portfolio and racking up trade commissions.”

“Experienced short-term traders can use 3x leveraged ETFs like the Developed Markets Bear 3X Shares (NYSE:DPK), Technology Bear 3X Shares (NYSE:TYP), or Direxion Shares ETF Trust Small Cap Bear 3x (NYSE:TZA) to get big “short” exposure without tying up too much capital. Of course, the higher the leverage, the more dangerous volatility can become. As such, the securities are recommended for day trading purposes only,” The Tickerspy Staff Reports.

We have a wealth of information on the ETFs mentioned and investors are encouraged to visit our categories below for each ETF.

UltraShort Dow30 ProShares (NYSE:DXD)  Visit Our (DXD) Category: HERE

The investment seeks daily investment results, before fees and expenses, which correspond to twice the inverse of the daily performance of the Dow Jones Industrial Average 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.

UltraShort S&P500 ProShares (NYSE:SDS)  Visit Our (SDS) Category: HERE

The investment seeks daily investment results, before fees and expenses, which correspond to twice the inverse of the daily performance of the S&P 500 index. The fundnormally 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.

UltraShort QQQ ProShares (NYSE:QID)  Visit Our (QID) Category: HERE

The investment seeks daily investment results, before fees and expenses, which correspond to twice the inverse of the daily performance of the NASDAQ-100 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.

Direxion Shares ETF Trust Small Cap Bear 3x (NYSE:TZA)  Visit Our (TZA) Category: HERE

The fund seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance of the Russell 2000 index. The fund normally creates short positions by investing at least 80% of net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. It is nondiversified.

Direxion Daily Dev Mkts Bear 3X Shrs (NYSE:DPK)  Visit Our (DPK) Category: HERE

The fund seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance of the MSCI EAFE index. The fund normally creates short positions by investing at least 80% of net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. It is nondiversified.

Direxion Daily Technology Bear 3X Shares (NYSE:TYP)  Visit Our (TYP) Category: HERE

The fund seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the price performance of the Russell 1000 Technology index. The fund normally creates short positions by investing at least 80% of net assets in financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. It is nondiversified.


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