Thursday, December 28, 2006

Trade and Chart: QID

When I'm in the mood to short the Nasdaq, instead of shorting the Q's, I like to go long QID. QID is an ETF that double shorts the index. It's a great way to increase your exposure to volatility when playing a boring index. Today I bought 500 shares at $53.90.

Looking at the chart, we see that the ETF recently burst through its downtrend line on very good volume, and has pulled back on weak volume--a very bullish sign. The RSI is also particularly strong.

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