Two ProShares inverse ETFs not yet overbought

I wrote a post this past weekend that identified the strongest BUY and SELL signals in the ProShares lineup of ETFs.

All the strongest BUY signals belonged to the short and ultra-short ETFs.

With the market looking shaky today amid bad news from UPS, continue strength in oil, further weakness in home prices, etc., it didn't seem unreasonable to think about a little downside protection.

In the weekend's post, I cautioned readers that it is dangerous to chase the ultra ETFs. They can change direction on a dime and moves of 2%, 3% or more per day are far from uncommon. It may be best for now to stay away from those ETFs that are already on the list of strongest performers.

An alternative is to look at those ETFs who were not on the list of strongest signals. Notable by their absence in the list of strongest BUY signals were the Ultra-Short MidCap 400 (MZZ) and the Ultra-Short QQQ (QID).

These two inverse ETFs having been moving up since the recent market peak in mid-May but not nearly as aggressively as the Ultra-Short DOW 30 (DXD), for example. This is due to the fact that NASDAQ and mid-cap stocks have held up decently during the current down-turn.

If you believe the recent market peak was a sucker's rally and that stocks are headed for further lows, these two ETFs may be good choices. Note that they both trade with decent volume, especially QID.