Inverse ETF's

Posted by downtowntrader | 3/19/2007 09:20:00 PM | 1 comments »

I've been tracking the QID and TWM inverse ETF's in recent weeks as a means to trade the general markets through a correction or bear market. The reason I am looking at them is not because I am averse to shorting but because they are leveraged at twice the performance of their long counterparts. The Bulls had a decent day today although on lower volume. If the indices keep rising on declining volume it should setup a nice opportunity to get long these inverse etf's.

UltraShort QQQ ProShares (ETF) (Public, AMEX:QID)
Here is a chart of QID showing a clear break of a downtrend and then a double bottom breakout which has yet to reach it's target. It is pulling back to test the breakout area as support and may find support soon.

UltraShort Russell 2000 ProSha (Public, AMEX:TWM)
The IWM inverse, TWM, is relatively new and still a little light in overall volume. It is pulling back to the rising 20sma and could find support here as well.

Vanda Pharmaceuticals Inc. (Public, NASDAQ:VNDA)
VNDA is a chart that is looking bullish to me in the case that the markets decide to rally after the fed meeting. It has retraced t partially fill the breakout gap and is finding support near the bottom bollinger band.

Empire Resources, Inc. (Public, AMEX:ERS)
ERS is sporting an interesting chart for bottom fishers. All indicators are oversold and bouncing back while OBV is in a leading divergence.

Corrections Corp. of America (Public, NYSE:CXW)
CXW is one I have been stalking for an entry, and while it may pullback a little further, it is in a decent spot here right now. I will be watching it closely.

Alberto-Culver Company (Public, NYSE:ACV)
ACV is a chart that is looking weak to me. It broke out of a triangle and retraced to the declining sma's. It looks like it may come back to test the recent pivot low.

Good Luck,



  1. Louis // 5:18 PM  

    Hey Joey
    I read ERS pattern, as it is showing triangle reaction for previous down move that overshot to the upside and now heading down to a little below $7 before it turns back. Give me some feedback on your thoughts, please.