Oversold List Shows Market at Tipping Point
ProShares UltraShort S&P 500 ETF (SDS)
Background: SDS trades an average of 17.2 million shares per day .
52-Week High: $28.1652-Week Low: $13.03 Similar to the love I have for the Faz, I don't believe trading SDS makes a lot of sense other than for intraday trading in accounts that are not able to short. Self-directed IRAs come to mind. Even for those purposes, I question if the edge is positive. Also, similar to FAZ, SDS is oversold on the weekly, and on the daily chart. The daily is in a strong downtrend, and despite the transaction friction that causes loss in value, we still have to assume a reversion to the mean with an index product is expected.
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