Buy ProShares Short MSCI Emerging Markets (EUM)   3 comments

With emerging markets, especially China, showing some sensitivity to the Federal Reserve’s QE tapering recently, I decided the ProShares Short MSCI Emerging Markets (EUM) is a good buy for the next few months. Holding it for that long a period, I didn’t want a leveraged etf, and EUM is perfect for this play.

At this point, I have a price target of $32 (near the 52 week high) on EUM, although it could surpass this if things get uglier than I expect.

I added EUM to my IRA at $27.54.

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Posted February 27, 2014 by edmcgon in Portfolio Moves

3 responses to “Buy ProShares Short MSCI Emerging Markets (EUM)

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  1. Ed,

    To me the picture is to mixed on China right now to short. Same with some other emerging markets. Seems a lot of downside was priced in the last few months already and not much left to the downside.

    • I would agree. Weekly chart does not look bad, although technicals are starting to show weakness. Daily chart is weak. I don’t see any rush to buy this one.

  2. I just reviewed a couple of Emerging Market Funds I owned two to five years ago: EEM, VWO, SCHE, MSF, etc. In a broad stoke review it appears most dropped and hit a low around 2/1/14 but have bounced back 10% by mid-Feb. and just trading sideway since mid-Feb.

    All would have to move up more before I would buy but at the same time I wouldn’t go short at this time.

    Good luck, Ed.

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