NEW BULLISH Plays
Ultrashort MSCI Europe - EPV - close 21.32 change -0.15 stop 20.21
The investment seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the MSCI Europe index. The fund invests in derivatives that advisors believes should have similar daily return characteristics as twice (200%) the inverse of the daily performance of the Index. It invests typically the rest of the assets in money market instruments.
Target(s): 22.35, 23.40, 24.50
Key Support/Resistance Areas: To Follow
Time Frame: 1 to 2 weeks
Why We Like It:
NOTE: This is an double inverse ETF and a bearish play on European equities. Expect volatility and use small position size to manage risk.
EPV has broken out of its long term downward trend line and has made a series of higher highs and higher lows throughout the month of August. I believe there will be a correction in European stocks and this one way to play it. I suggest we initiate positions if EPV trades to down to $21.10 and we'll use a tight stop of $20.21 to keep losses small if we are wrong. Our first two targets are +6% and +10% higher respectively.
Suggested Position: Long EPV stock if it trades to $21.10
Annotated daily chart:
Entry on August xx
Average Daily Volume: 259,000
Listed on August 31, 2010