UltraShort S&P500 ProShares (ETF) (AMEX:SDS)

My long term outlook on the market is up, thus it only makes sense to short an UltraShort.

I do not think the market is going up now but it will over the long-term and shorting the double short S&P500 is a triple long play. Seems like an absolute no brainer. I am confident in predicting this will be my longest holding on CAPS. Check back in 5 years and you will see this position still sitting pretty.

For a long term pick, this is as easy as it gets. If this stock doesnt underperform the S&P in the long term then either capitalism has failed or Earth was hit by a huge meteorite.

The banks are bankrupt and that may hurt the stock market. The only ones that know they are bankrupt are the one who can calculate all the off balance sheet structured products they are holding. Although most of it they dumped in clients accounts. Some hedging is prudent.

Do I need to explain? triple your score now!

If the broader market goes up, this stock will surely underperform. In the long run, this statement seems like a pretty good bet.

Shorting long term is not a good idea in general...

Shorting the shorts...long term.

short

A nice way to hedge against what seems to be an impending slide in S&P based on financials meltdown - we're not out of the woods yet.

In long term the market will go up.

This is a pick for or against the broad market, pure and simple.

I can't see much support for the S&P above 1,500, and I think growth in China will consume so much raw material that the resulting higher prices will eat into corporate profitability. Of course if the market goes up this thing is a deathtrap.

Shorting not a good idea

Like the straight short EFT (SH), this is purely a bet on the general direction of the stock market (up) for the long-haul. Unless there is a deflation/depression situation, this EFT will always massively lag the standard index.

Will do well when S&P has a major pullback this summer.

crash

The ProShares UltraShort S&P 500 (the Fund), started in July 2006, seeks daily investment results that correspond to twice, or 200% of, the daily performance of the S&P 500 Index (the Index). If the Fund is successful in meeting its goal, its net asset value (NAV) would gain twice as much as the Index when the Index rises on a given day. Conversely, its NAV would lose twice as much as the Index when the Index declines.

This Fund employs leveraged investment methodologies to accomplish its investment objective. Over time, the use of leverage, combined with the effect of compounding, will have a more significant impact, positive or negative, on the Fund’s performance compared to the Index, than a fund that does not employ leverage.

Widely regarded as the best judge of the US equities market, this Index includes 500 leading companies of the US economy. Although the S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of US equities, it is also an ideal proxy for the total market.

However, large cap stocks representing the Index are the first one to be hit in a market downturn, although the recovery is much quicker than the other sibling indices. With a market-cap of $144 billion, the Fund has posted an awful cumulative return of negative 16.93% as against a return in excess of 11% posted by the Index, since July 2006.

The strategy of the Fund seems to be apprehensive, considering the pathetic returns situation, high expense ratio at 0.95% and the susceptibility of US to an alleged economic slowdown in 2007, which causes the Fund to be less investor affable.

S&P headed DOWN. SDS headed UP. Duh.

st buy