Two New Picks From The ETF Professor
The ETF Professor likes to spend time cooking up new trading ideas after the market closes and thinks there might be a couple of good ones with a pair of inverse leveraged ETFs that touched 52-week lows today. That's right, the ETF Professor is going to tempt fate and say these two ETFs are oversold.
First up, we have the Direxion Daily Financial Bear 3x Shares (NYSE: FAZ). Usually referred to by its ticker, the weekly chart on FAZ shows an oversold condition and the ETF touched a 52-week low of $20.42 today before closing at $20.87. An entry around $20.75 to just over $21 should keep you comfortable with a stop loss around $20.25. With regional banks under pressure and Bank of America (NYSE: BAC) faltering somewhat, a quick trade that emphasizes a bearish moves in the financials could be very rewarding.
The Professor's next pick is the UltraShort Real Estate ProShares (NYSE: SRS). SRS seeks returns that correspond to twice the daily inverse performance of the Dow Jones U.S. Real Estate index. Again, the chart shows an oversold condition and SRS touched a 52-week low of $9.63 before rebounding to close at $10.03. An entry in the low $10 area with stop around $9.50 should work.
The Professor will update these trades tomorrow after the close.
