Learning Markets - Investing education and trading ideas

Short Emerging Markets with this 3X Bear ETF

by Terrence on April 13, 2012

For a nice risk/reward trade, take a look at EDZ, 3X bearish emerging market ETF. Price has been forming a rounded bottom since early February at around $12, a series of higher highs and higher lows mark a nice uptrend forming, and positive MACD divergences have been picking up since March. This one has a tendency to gap up and pullback so don’t chase it on gaps, but buy it on dips.

ENTRY: 12.85
PROTECTIVE STOP: $11.85
PRICE TARGET: 14.85
RISK/REWARD RATIO: 1:2

Trade Details:

The Ticker: EDZ
The Trade: Buy at $12.85
Target Price: $14.85

Trade Opened: April 13, 2012

Chart courtesy Finviz. Click to open in larger window.

This is not investment advice. Learning Markets, LLC is not responsible for errors or omissions. Please be sure to read our disclaimer.

Hemadri Singh

Are you still in?
- Terrchan
  
  I’m not – i took profits to fund some other trades, but I would not mind still being long this one still
Hemadri

luv your trades! Any issues with this fund’s NAV?
- Terrence
  
  Thanks Hemadri – just thank me by continuing to visit the site and post your own trade ideas. The forum once was a very active place, with many contributors and I hope that it will become that very soon. The LM community is very large, but we need more people contributing to make it worth visiting. Plus – Dan and the team are continuing to enhance the site so I have a lot of high hopes for it. have a good weekend
  - John Jagerson
    
    Terrence – I missed this comment at first. Thanks for all your activity. The good news is that we are signing up people in the community but I think they are still kind of “shy.” Lets keep at it and I am confident we will get things kicked off.
    
    Tell me what you think about giving away one of our books for the best trade of the week or something like that? Maybe incentivize some activity. Too lame?
    - Terrchan
      
      I like the book incentive John. I also wonder if getting the scottrade community more integrated with this trade idea platform could help with activity more. I notice that you and Wade do not publicize this site during your webinars, but you do point to the scottrade.learningmarkets links – I’m sure that’s intentional to keep to some kind of agreement you have with scottrade. If that’s so, then maybe we need to get more viral on twitter or something?