Virtual Portfolio Update

Today, I got rid of the ProShares Ultra Short S&P 500 ETF (SDS) from the virtual portfolio. I sold 500 shares at $18.59. I took a loss on this, but I expect the market to perform well in the next 1 1/2 - 2 months, so I wanted to cut my loss and transition that cash into something that will give me a nice return.

With the cash from the sale of SDS, I purchased UPRO. It is ProShares UltraPro S&P 500. It is a bullish 3x leverage ETF. So, if the S&P 500 is up 1%, then UPRO will be up 3%. Basically the inverse of SDS, except SDS was not 3x leveraged. Contrarily, if the S&P 500 is down 1%, UPRO will be down 3%.

 I like this chart. It is trading above its 50 day MA, and looks like it will make the 50/200 bullish cross soon. We see that it is in a nice uptrend, which we will be looking to take advantage of for the VP.

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Here is the chart for SDS. Notice how ugly it is. Just had the 50/200 bearish cross, is now below its 50 day MA, and is clearly in a downtrend. Speaking strictly from a technical standpoint, I should not have bought it back when I started the VP. However, I was not looking at technicals, and wanted to show my readers how one could hedge a portfolio with an inverse ETF.



Glad SDS is gone!

-BFB