by Sam Collins 10/06/08
PowerShares DB Gold Double Short ETN (DZZ) -- This Exchange-Traded Fund (ETF) -- which seeks to replicate (net of expenses) twice the inverse of the daily performance of the Deutsche Bank Liquid Commodity index - Optimum Yield Gold Excess Return -- hasn't been around for long.
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But a base appears to be established at around $24. For those who are inclined to believe that gold is headed south, DZZ may be a way to hedge against that decline or profit from it.
However, this is a speculative trade with high volatility, so investors are cautioned to use stop-loss orders to protect against an excessive loss.
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FAST is now consolidating and recently flashed a buy signal from our internal indicator.
Options Expiration Adds Volatility
The opening looks to be higher but today is options expiration day, and anything could happen.
Chances are high stocks will sell off further, but be alert for a dead-cat bounce after such a dramatic breakdown.
Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
CAT, the blue-chip of its industry, is the first to attract attention when it's time to dress up a portfolio.
