"Shorter" Is Better Today For Markets

Tuesday, 15 Jan 2008 | 3:56 PM ET

Who's making money today? The shorts, in fact some of them are getting positively bold. The big movers are Exchange Traded Funds (ETFs) that specialize in Ultrashort positions--that is, as the indexes behind these stocks go down, say, 5 percent, these UltraShort funds GAIN 10 percent--twice the inverse.

It's a risky game, but a lot of people are doing it. Here's four examples:

1) Shorting China. The ProShares Trust Ultrashort China 25 (FXP), up 15 percent today as volume is 50 percent above normal.

2) Shorting small cap stocks. As the small-cap Russell 2000 hits a new low, the ProShares Ultrashort Russell 2000 (TWM) is seeing heavy volume, up nearly 4 percent.

3) Shorting financials. As financial stocks hit new lows, the Ultrashort Financials ProShares is up over 7 percent.

4) Shorting oil and gas stocks. The UltraShort Oil and Gas Proshares (DUG), up 6.4 percent as energy stocks decline on lower oil and concerns about lower demand; volume 50 percent above average.

Questions? Comments? tradertalk@cnbc.com


  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

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