Sunday, December 03, 2006

ProShares Ultra Short (QID)

If you didn't know, there are ways to short the overall market without actually shorting the SPY, DIA, or QQQQ. All one has to do is buy the Proshares Ultra Short ETFs.

QID = Nasdaq
SDS = S&P 500
DXD = The Dow

The advantage (or risk) is that the ETFs will move twice as much and in the opposite direction of market it follows. The nasdaq goes down 1% and the QID goes up 2%. I bought some of QID shares on Friday.

1 comment:

Eric Bergen said...

Just bought some UltraShort Dow30 on Friday. Intel, Apple & IBM all beat analyst forecasts & smart money sold the news. I think this may signal the top of the market. Add on the continued inverted yield curve, stagflation, housing slump, & a dwindling chance of a rate cut... and I think these low-cost hedging instruments are looking good for everyone's portfolio.