Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Four Inverse ETFs to Invest in Right Now

By

Stocks and other risker assests might be tumbling, but the time is right to invest in inverse ETFs that provide quick-strike profits on the downside.

PrintPRINT
Harsh reality alert: Stocks and other riskier assets just want to keep on tumbling. We're too early into the fourth quarter to rule a rally out of the question, but the major U.S. indexes are in deep technical trouble and if the S&P 500 cannot hold psychological support at 1,100, the next stopping point could very well be 1,060. That implies 40-50 points of downside from where the index currently resides.

With that in mind, the time is still right for inverse ETFs. So put your active trader caps on and get ready for quick-strike profits on the downside with these inverse funds.

1. Direxion Daily Agribusiness 3X Bear Shares (COWS): Don't have a cow, but COWS is in rally mode because the Market Vectors Agribusiness ETF (MOO) is in a tailspin. MOO is an ETF I would be in favor of in a bull market, no doubt, and its long-term outlook is encouraging. That said, fertilizer producers are too high-beta to work here and COWS is the best way to short those companies without directly shorting the stocks. This new ETF has gained an astounding 63% in the past month alone.

2. Direxion Daily Healthcare Bear 3X Shares
(SICK): One of the best tickers out there, but this ETF really flies under the radar. As long as correlations remain high, health care stocks will not be immune to broader market's trials and tribulations. They may not decline as much, so that makes leveraging a bearish bet on the group a potentially smart call. Be advised SICK has sick volume, as in less than 1,200 shares a day.

3. Direxion Daily China 3X Bear Shares
(YANG): If you're looking for an attractive chart, YANG is one ETF to evaluate. Like COWS, this triple-leveraged fund is in rally mode right now. In fact, YANG is up nearly 5% on Monday despite some decent economic news out of China. If that news was bad, YANG could be up 10%-12% or more. Definitely one to use stop-loss orders with.

4. ProShares UltraShort MidCap 400 (MZZ): MZZ is basically the bearish cousin of the SPDR S&P 400 MidCap Trust (MDY). That ETF is down nearly 15% year-to-date, but the declines have accelerated recently as MDY is more than 21% in the past 90 days. If large-caps aren't a place to hide, mid-caps certainly are not. Seek refuge from the storm with MZZ as long as it stays above $53.

Editor's Note: This content was originally published on Benzinga.com by The ETF Professor.

Below, find some more great ETF and market content from Benzinga:

Should China Be Labeled a Currency Manipulator?
By Jonathan Chen


Forced to Make Choices
By Adrienne Toghraie

Occupy Wall Street: The Movement Grows
By John Thorpe

Twitter: @Benzinga
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE