SDS Chart SDS data by YCharts

ProShares UltraShort S&P 500 ETF ( SDS)

Background: SDS trades an average of 17.2 million shares per day .

52-Week High: $28.16

52-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.

If you liked this article you might like

Market Is on the Straight and (Very) Narrow

Look Back to Go Forward

Stock Observations; Reviewing Equities: Doug Kass' Views

Even North Korea's Kim Jong Un Can't Stop This Epic S&P 500 Stock Rally

Robots Might Be Biggest Obstacle for Stock Market Bears