Tough to fight momentum, SKF, DOG, and others
Posted June 26th, 2008 by theStockMasters...
When will the DOW stop falling? The talking heads are saying we are not at the bottom yet. Despite how 'cheap' stocks appear to be, if they continue to get cheaper, arm yourself with Short Dow30 ProShares (AMEX:DOG) and UltraShort Financials ProShares (AMEX:SKF).
We tend to be optimists at the Masters but we have also being preaching to our readers and subscribers to keep a large cash position. There's no use going all in when you buy a 'bargain' stock and then it falls another 20%. Cash is King, and will be until the Bulls get a chance to run.
So rather than continue to swim upstream, let's review some options for cashing in on the Doom and Gloom. If you don't want to buy Puts or Short stocks, go with the Short Exchange-Traded Funds (ETF's) and buy a few shares of the funds listed below. You can buy these bad boys with your IRA account. Many of us who have cash accounts are not able to have short positions. But with these ETF's, by going long (buying) they are in fact exposed to the short side, thus profiting when the stocks that make up the ETF fall on their face.
Short the stocks that make up the DOW by playing Short Dow30 ProShares (AMEX:DOG).
Think financials will keep falling, then UltraShort Financials ProShares (AMEX:SKF) is your play.
There's a ton to pick from:
Short & UltraShort MarketCap ETFs:
| ETF Name | Ticker | Benchmark Index |
|---|---|---|
| Short QQQ | PSQ | Nasdaq-100 |
| Short Dow 30 | DOG | DJIA |
| Short S&P 500 | SH | S&P 500 |
| Short MidCap400 | MYY | S&P MidCap 400 |
| Short SmallCap600 | SBB | S&P SmallCap 600 |
| Short Russell2000 | RWM | Russell 2000 |
| UltraShort QQQ | QID | Nasdaq-100 |
| UltraShort Dow 30 | DXD | DJIA |
| UltraShort S&P 500 | SDS | S&P 500 |
| UltraShort MidCap400 | MZZ | S&P MidCap 400 |
| UltraShort SmallCap600 | SDD | S&P SmallCap 600 |
| UltraShort Russell2000 | TWM | Russell 2000 |
UltraShort Style:
| ETF Name | Ticker | Benchmark Index |
|---|---|---|
| UltraShort Russell1000 Value | SJF | Russell 1000 Value |
| UltraShort Russell1000 Growth | SFK | Russell 1000 Growth |
| UltraShort Russell MidCap Value | SJL | Russell MidCap Value |
| UltraShort Russell MidCap Growth | SDK | Russell MidCap Growth |
| UltraShort Russell2000 Value | SJH | Russell 2000 Value |
| UltraShort Russell2000 Growth | SKK | Russell 2000 Growth |
UltraShort Sector:
| ETF Name | Ticker | Benchmark Index |
|---|---|---|
| UltraShort Basic Materials | SMN | Dow Jones U.S. Basic Materials |
| UltraShort Consumer Goods | SZK | Dow Jones U.S. Consumer Goods |
| UltraShort Consumer Services | SCC | Dow Jones U.S. Consumer Services |
| UltraShort Financials | SKF | Dow Jones U.S. Financials |
| UltraShort Health Care | RXD | Dow Jones U.S. Health Care |
| UltraShort Industrials | SIJ | Dow Jones U.S. Industrials |
| UltraShort Real Estate | SRS | Dow Jones U.S. Real Estate |
| UltraShort Semiconductors | SSG | Dow Jones U.S. Semiconductors |
| UltraShort Oil & Gas | DUG | Dow Jones U.S. Oil & Gas |
| UltraShort Technology | REW | Dow Jones U.S. Technology |
| UltraShort Utilities | SDP | Dow Jones U.S. Utilities |
Keep your heads up Masters, but don't lose your shorts, so play the market accordingly. 
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