ETF Shark Alerts With James Rev Shark DePorre

ETF Shark Alerts

Action DUG DXD FAZ

11/27/09 - 09:53 AM EST

Closing Out

As most readers probably already know, the U.S. markets are seeing a sharp drop this morning following news out of Dubai that its corporate flagship, Dubai World, is in danger of defaulting on about $60 billion in debt.

As I said in my RealMoney blog this morning, however, I suspect that the dip buyers who have been anticipating a chance to add exposure into the end of the year will be eager to use this as an opportunity to put more of their capital to work.

I've repeatedly said in my ETF Shark Alerts newsletter service that I would be looking for a chance to cover my three index short positions in the short-term portion of my model portfolio, and I think that this morning's washout presents the ideal opportunity to do just that. Therefore, after you receive this Alert, I will close out my holdings in Direxion Daily Financial Bear 3X (FAZ:NYSE), ProShares UltraShort Dow 30 (DXD:NYSE) and UltraShort Oil & Gas ProShares (DUG:NYSE). This will bring the model portfolio to all cash.

Should this development mark the beginning of something more ominous, I will look to remount index short, but the fact remains that this market has quite a way to go before the uptrend off the March lows is threatened.

Regards,

James "Rev Shark" DePorre

Send email to etfsharkalerts@thestreet.com

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James "Rev Shark" DePorre is the founder and CEO of Shark Asset Management, an SEC registered investment advisory firm. Mr. DePorre also operates SharkInvesting.com, an interactive online community that serves and educates active investors. In addition, he writes the "Trading Insights" blog for TheStreet.com, Inc.'s RealMoney premium subscription Web site. TheStreet.com, Inc. is a publisher and has registered as an investment adviser with the U.S. Securities and Exchange Commission. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here to send him an email.

ETF Shark Alerts contains the authors' own opinions, and none of the information contained therein constitutes a recommendation that any fund, sector, particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. You further understand that Mr. DePorre will not advise you personally concerning the nature, potential, value or suitability of any particular fund, sector, security, portfolio of securities, transaction or investment strategy or other matter. To the extent any of the information contained in ETF Shark Alerts may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.

ETF Shark Alerts portfolio is a model portfolio of stocks chosen by the author in accordance with his stated investment strategy. Your actual results may differ from results reported for the model portfolio for many reasons, including, without limitation: (i) performance results for the model portfolio do not account for the impact, if any, of certain market factors, such as lack of liquidity, that may affect your results; (ii) the price of ETFs chosen for the model portfolio may change in a short period of time, and although the "purchase" or "sale" of an ETF in the model portfolio will not be effected in the model portfolio until confirmation that the email alert has been sent to all subscribers, delivery delays and other factors may cause the price you obtain to differ substantially from the price at the time the alert was sent; and (iii) the prices of ETFs in the model portfolio at the point in time you begin subscribing to ETF Shark Alerts may be higher than such prices at the time such ETFs were chosen for inclusion in the model portfolio. Past results are not necessarily indicative of future performance.
Dow Jones S&P 500 NASDAQ 10-Year Note
10,329.72 1,093.48 2,137.89 32.01
Oil *
78.55
UP
19.80
UP
1.99
DOWN
0.55
DOWN
0.30
10 Yr
3.20%
SPDR Gold
115.45
+0.19%
+0.18%
-0.03%
-0.93%
Data delayed 20 minutes

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