I’ve been waiting for this development..
ETF’s that move inverse to their underlying index have arrived. These securities give IRA’s and other tax-advantaged acounts a method to to short the markets without the complexity (and time premium) of put options.
They have not attracted much volume yet.. but the bid/ask spreads are very reasonable: 69.97 @ 70.01 on the ProShares Short Dow 30 (aptly symbolized, DOG).
If we are in fact entering a new Bear market, these will be very handy tools to allow my Teewinot-managed retirement accounts to participate in the market’s primary trend.
For now, IBM is the only short in client accounts. While anything could happen this week with the Fed meeting, it looks like IBM will follow thru on that huge volume down move of June 8th.
I’ll add 50% to the position on a close below 76.75.
Short IBM
