It looks likes EEM/EEV provide profitable opporunities back in June 2008, stay tuned for analysis. EEM is a regional ETF focusing in emerging markets, in my opinion it can be categorized as medium risk. Russia, India, Chile, etc would be considered higher risk.
Blue arrows indicate the place that short positions can be entered, if we are not comfortable w/ shorting or we want more leverage, we can enter long positions on EEV instead of shorting EEM. EEV is theorectically the double inverse of EEM. So our everage enter price would have been around $65 w/ stop just under the red 50MA. We see that the range of bar started to expand quickily, the risk is quite high to enter positions on double inverse leverage shares when the range expanded so much.
If you notice in late Oct the EEM's PPO indicator had a bullish crossing but still below zero. However the EEV's PPO indicator had a bearish crossing AND it has also entered negative region! Shorting EEM would give you approx. 60% gain max, but longing EEV gives you approx. 220% gain!
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