Emerging Markets Bull 3x (AMEX:EDC)

When the overly optimistic FOMC says that household spending will be "constrained" by sluggish income growth, ongoing job losses, lower household wealth, and tight credit AND Shanghai stocks hit a seven-week low, then you know this bear market rally is finally over!

QUICK! Pick a reason to exit a market that has risen too fast and gotten too expensive. Here are three to choose from: buying power is getting exhausted according to DeMark indicators; daily sentiment indicators are 88% bullish; RSI’s and oscillators are over extended.

Overbought! will be pounched hard in a short pullback

The underlying index is EEM, Emerging Markets. That index in CAPS has been a 4 and 5 star pick forever. It is one of the highest performing ETF in the past 5 months with a strong upward trend. Long term I agree the compounded gains will eventually lead to higher falls. That is why I have limited my time frame to 1 year. But for now, I see a bright future.

Emerging Markets Bull 3x (EDC)

Emerging markets are unusually volatile, making them very susceptible to huge runs -- and huge drops. Most markets have been overbought as of late, for no apparent reason. At all. None. A correction is going to come, and we now have 3x the points.

Get Some,
assafer

Half-life period of leveraged ETF is inversely proportional to its volatility.

Based on my call that the rally is going to see a pull-back over the next few weeks I am giving all Bear ETFs a thumbs up and all Bull ETFs a thumbs down in the short run. I am only invested in a small sampling of these bear ETFs but in order to raise my CAPS score I entered several here.

Good growth.

Emerging markets will continue to grow at faster rate than developed markets.

Decoupling is fantasy. Most of these countries count on the US to buy their exports but the US consumer is down for the count and not coming back any time soon.

EDC

Fading every pick made by Ultralong

Emerging markets will continue to outperform. Also secondary commodity/inflation play. 3x ETF great for selling covered calls.

So much potential outside the U.S.

Following Everyday's picks after he is down 30 points on them usually leads to success. All ultras go to zero eventually--it's simple math.

1% of the IBD 100.

Because Ultras Suck

Did I mention rollercoasters somewhere?

picking a couple more pairs of opposite leveraged ETFs to short.