China Inverse ETF (FXP) Could Rise On Baidu's Bad News
Let's be honest: Thats was an ugly after-hours for Baidu performance(Nasdaq: BIDU), China's Google (Nasdaq: GOOG). After reporting disappointing third-quarter results, Baidu plunged nearly $57 in the after-hours session. That has the ETF Professor ready to take a short-term trade with an inverse China ETF.
The UltraShort FTSE/Xinhua China25 ProShares (NYSE: FXP), which seeks to replicate twice the daily inverse performane of the iShares FTSE/Xinhua China 25 Index (NYSE: FXI). As the Professor warned earlier leveraged ETFs, are short-term plays and just in the essence of being conservative, if FXP breaks below $8 tomorrow, the Professor recommends getting out.
FXP closed at $8.27 on Monday and the Professor thinks the Baidu news could be a good for a move of at least 30 or 40 cents in the ETF tomorrow. Take those profits and run.
