"Shorter" Is Better Today For Markets
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.
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