Leveraged ETF to Play the Fed Sell-off : SMN

ProShares UltraShort Basic Materials Fund (NYSE:SMN) — This leveraged ETF seeks daily investment results (minus fees and expenses) of twice (200%) the inverse of the Dow Jones U.S. Basic Materials Index.

SMN had a major breakout when stocks plunged yesterday in response to the Fed’s new quantitative easing plan, Operation Twist. If stocks continue to fall and the major indices plunge through support, this inverse fund could rise to new highs. The trading target is $28. Use stop-loss orders to protect against a large loss.

Leveraged ETFs are not for everyone. The buyer should be a seasoned trader with a record of success trading highly leveraged investments