Welcome the Negative Nancy Index (QID, FXP, DGZ, DUG, VXX)

Negative Nancy Index 2010The bulls can't run forever as there is always Chaos awaiting in the shadows. Just when you think your precious equities will run forever the market will topple and fall while only the inverse ETFs and short positions will reap the benefits. Stop fooling yourself, there's one million reasons to believe a market correction is upon us.

Thus fellow Masters, join chaos and evil, welcome the Negative Nancy Index for 2010. (QID, FXP, DGZ, DUG, VXX)

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Without further a due, here is the Negative Nancy Index for 2010:

WHY THESE PICKS?

QID - Short the NASDAQ 100 double, the QID is the ultimate and first tool in betting the market is going down in flames. Little known fact, the Mortgage Backed Security buyback program ends today, just about any of these picks including the QID will benefit.

FXP - Chinese equities are a joke, the bubble is going to burst, be serious, how much longer can their government keep up the charade? Read -- Short China buy Going Long the FXP for more insight on to why the FXP is a trade to consider.

DGZ - Cash 4 Gold and others won't stop their full court press of web spam/ads and non-stop commericals running on CNBC, Bloomberg or Fox Business. Next thing you know Shit4Gold.com will give you twice as much money, the gig is up gold lovers.

Spy Hunter - Oil SlickDUG - Add to the risk but betting against big Oil makes perfect sense as oil continues to climb to new highs on a daily basis. Oil like Gold has run to fast too quick, traders are waiting in the wing ready to use the Spy Hunter Oil Slick move on you, leaving you with oil & gas holdings while you crash and burn.

Case and point, check on MSNBC.com's article that was released today -- Wall Street is driving up oil prices

OPEC countries also are convening in Mexico this week to map out a strategy for keeping prices from rising higher.

But officials may face an even bigger problem: The recent rise in prices seems to be driven by Wall Street investors — not market supply and demand.

Though prices crashed from their peak of $140 a barrel before the recession began in December 2007, they have since recovered substantially. Last year, the price of crude fell to $33 a barrel before a relentless recovery to about $80 by year-end.

Prices at the pump have been following the same upward path — from $1.84 in January 2009 to $2.67 by year end.

The upward trend has continued, and oil watchers at Wall Street banks are betting crude will eventually trade above $90 a barrel this year. Part of the reason, the thinking goes, is that as the global economy recovers so will demand for oil and gasoline.

Need we say more? Fucking Smoke Screen combo Oil Slick fellow Masters.

VXX - Bet on Volatility vs. Decline: Long the VXX
volatilityiPath S&P 500 VIX Short Term Futures ETN (NYSE:VXX) provides exposure to equity market volatility through CBOE "Volatility Index" futures. Investors are busy trying to figure out where the market is headed and taking positions both long and short, while the underlying fear is we are headed for a correction, the VXX makes perfect sense.

A direct investment in VIX (commonly referred to as spot VIX) is not possible. The S&P 500 VIX Short-Term Futures ETN (NYSE:VXX) holds VIX futures contracts, which could involve roll costs and exhibit different risk and return characteristics. Read more about why the VXX kicks ass>>

Enjoy the Negative Nancy Index (QID, FXP, DGZ, DUG, VXX)

Security Ticker Price Mkt Cap Avg Vol 52wk high 52wk low
ProShares UltraShort... QID $ 16.61 837.14M 13.74M $ 50.75 $16.46
ProShares UltraSh... FXP $ 7.81 408.62M 4.08M $ 28.40 $ 7.16
PowerShares DB Gold... DGZ $ 19.79 393.80M $ 33,000.00 $ 26.85 $18.02
ProShares UltraShort... DUG $ 12.36 198.06M 2.21M $ 27.55 $11.22
iPath S&P 500 VIX Short... VXX $ 21.30 1.15B 7.10M $ 118.99 $21.27
 
 
 
 
 
 

 

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