Charts Of The Day

Pro Shares Ultra Short SP 500 (SDS)

Pro Shares Ultra Short Financials (SKF)

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The bottom chart is the Pro Shares Ultra Short Financials (SKF). This ETF rises twice the percentage that a basket of financial stocks decline. I made a nice profit last fall and again this spring when the finacial stocks were crashing. Look how high this ETF went this spring. In March this ETF soared to 270 and now with the huge rise in financials, shares can be had for a mere 43/share. I believe the financials have peak (as has the stock market in general) and now is the time to buy SKF for another huge run to the upside. I just bought SKF a couple of days ago and don't expect to sell until it's over 100 again.

The SP 500 also looks like it has topped out of it's huge bear market rally and expect the next leg down to be ugly. We still can hit marginal highs in the next few weeks but I doubt it. A nice way to play the next move down in the SP is to buy SDS (top chart), the Pro Shares Ultra Short SP500. It goes up (or down) twice the inverse movement of the SP500. I expect at least a 20% decline in the SP between now and the fall. SDS would rise 40% if I am correct. I recently bought SDS and look to profit from the coming resumption of the bear market.-Lou