Skip to main content

Ride the momentum train -- this week's strongest ProShares ETFs

It's no secret this market has increased in volatility lately. In this post we look for signs of sector momentum in the short term moves of the ProShares leveraged ETFs. These favorites of traders, individual investors and institutions alike have been used as hedges, contrarian indicators, momentum plays and vehicles to juice up portfolios.

The following table lists those members of the ProShares family that have turned in the best performance over the course of the last week (the period from last Tuesday through this Monday):

Symbol Fund Name Group Objective Percent Change
JPX UltraShort MSCI Pacific ex-Japan Short 200% of the Inverse 7.9%
SJH UltraShort Russell2000 Value Short 200% of the Inverse 7.7%
SMN UltraShort Basic Materials Short 200% of the Inverse 7.7%
SRS UltraShort Real Estate Short 200% of the Inverse 7.6%
SIJ UltraShort Industrials Short 200% of the Inverse 7.0%
SSG UltraShort Semiconductors Short 200% of the Inverse 6.7%
EWV UltraShort MSCI Japan Short 200% of the Inverse 6.4%
SKF UltraShort Financials Short 200% of the Inverse 6.4%
TWM UltraShort Russell2000 Short 200% of the Inverse 6.2%
EFU UltraShort MSCI EAFE Short 200% of the Inverse 6.0%

Noticeable in their absence are the Ultra Gold (UGL) and Ultra Silver (AGQ) ETFs. Precious metals had been on a roll as investors looked for a safe haven. That trend seems to be on the wane.

With a couple of double short ETFs focused on the Russell 2000 making this list, it appears that investors are abandoning small caps.

Foreign stocks are also pretty out of favor. On this list are double short ETFs that track MSCI Pacific ex-Japan, Japan itself and the MSCI EAFE. Furthermore, Basic Materials are being shunned. This is a sign that investors have their doubts about robustness of the global economy in general. And keep in mind that basic materials are important for emerging market countries that are often big exporters of raw materials. So this is a case of the market voting against developed countries and developing countries alike.

Conclusion --

Given that the list above is comprised entirely of double short ETFs, it shows which sectors have been most out of favor and suggests how a fairly active trader might look to catch some gains while accepting the downward momentum of small stocks, foreign stocks, basic materials and other sectors represented above.

On the other hand, if you look at ProShares activity as a contrary indicator, then perhaps you should look at some of the double long ETFs in these sectors.

In any case, if you would like to see a list like this every week, let me know by leaving a comment or sending me an email.

In the meantime, perhaps you should consider embracing the volatility and riding the momentum with one of these ProShares ETFs.

Disclosure: no positions in any ETFs listed in this article (unfortunately)


Popular posts from this blog

Running TradeRadar on Windows 7 and Windows 8

Development of the original TradeRadar Stock Inspector software was begun back in the days before Windows 7 and Windows 8 were available.

As these newer versions of Windows have become more popular, we have heard from some users that they are having problems installing and running TradeRadar on their newer PCs.

The good news is that TradeRadar will work just fine on Windows 7 and Windows 8. All you have to do is adjust the Windows Compatibility Settings to ensure TradeRadar runs as intended.

It is recommended that you can apply Compatibility Settings when running the initial installation; however, it is also possible to apply Compatibility Settings after the program has been installed.

Prior to installation
After downloading the install program, go to the folder where you have stored the TradeRadarStkInsp_7_Setup.exe or TradeRadarStkInsp_7_PRO_Setup.exe executable. Right-click on the executable file and select Properties. Click the Compatibility tab. Adjust the Compatibility mode to …

Durable Goods report for Sept just so-so but Computer segment is on fire

The Durable Goods advanced report for September 2011 was released on Wednesday.

I like to dig into the Durable Goods report because it can be useful for seeing how tech in aggregate is performing and how the sector may perform in the future. I always focus on two particular measures: shipments and new orders. Let's see how it played out last month.

Shipments -- 

I generally give less importance to Shipments since this is a backward looking measure reflecting orders that have been confirmed, manufactured and shipped. It's similar to earnings reports -- it's good to know but the data is in the past and we're more interested in the future. The following chart shows how September shipments looked for the overall tech sector:

Results for the overall tech sector were a bit weak but take a look at the next chart which tracks the Computers and related products segment:

Results here were actually quite good and, to make things even better, the previous month was revised upward.


Alert HQ has moved!

End of an era!

This site was started way back in 2006/2007 to showcase my blog posts and the Alert HQ buy signals and sell signals. Alert HQ grew to include other kinds of stock alerts including Swing Signals, Trend Busters, Trend Leaders, Cash Flow Kings and more.

In the meantime, I built a sister site, and I started using some of the same Alert HQ content over there. As a result, I am discontinuing the Alert HQ data here at

The good news, however, is that all the Alert HQ signals and stock screens are still completely free. In addition, the pages have been enhanced so that you can hover over a stock symbol and a small chart will pop up so you can get a quick look at the stock's recent price action. If you click on a symbol it will take you to a page with plenty of financial and technical analysis information (still free!) as well as a larger chart that you can play with in terms of adding or deleting indicators, moving averages, etc.

Click …