Leveraged ETF to Play the Fed Sell-off

ProShares UltraShort Basic Materials Fund�(NYSE:SMN) — This leveraged ETF seeks daily investment results (minus fees and expenses) of twice (200%) the inverse of the Dow Jones U.S. Basic Materials Index.

SMN had a major breakout when stocks plunged yesterday in response to the Fed�s new quantitative easing plan, Operation Twist. If stocks continue to fall and the major indices plunge through support, this inverse fund could rise to new highs. The trading target is $28. Use stop-loss orders to protect against a large loss.

Leveraged ETFs are not for everyone. The buyer should be a seasoned trader with a record of success trading highly leveraged investments

  • See Sam Collins� Daily Market Outlook: How Low Will the Dow Go?
  • See Serge Berger�s Daily Market Outlook: The Charts Have Spoken� And It Doesn�t Sound Good

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