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MDM - Inverse ETF suggestions

Note, the model did not switch to neutral before moving to a sell because there were still enough indications yesterday that this could just be a minor pullback. The action of yesterday's leaders made the model nearly switch to neutral but there were enough leaders that were still showing constructive pullbacks even though the group as a whole fell more than the leading indices, but keep in mind that leaders generally are more volatile than the major averages.

Here are a few suggestions of inverse ETFs we believe will outperform in the current sell signal environment given the situation in China triggering a short to intermediate term top in commodities as well as the situation in Ireland:


SH (inverse S&P 500 - this index contains commodities-related stocks)

FXP (inverse China - play on potential rate hike)



EPV (inverse Europe - play on sovereign debt problems)

BZQ (inverse Brazil - play on commodities short to intermediate term top)

AGQ (inverse silver though has already come off hard off the top)

DGP (inverse gold)



SPXU (inverse S&P 500)


Keep in mind that, with the exception of May 2010, these pullbacks since March 2009 have been short lived, so given precedent, we would not be surprised to see the market find its footing soon, and resume its uptrend. QE2 is alive and well. That said, our opinions do not matter. Price/volume action of the major indices and leading stocks rule the day.

This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2021 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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