Why I'm Taking a Closer Look at SMN

Since my timely call on the Precious Metals correction I had some success trading the UltraShort MSCI Emerging Markets ProShares (EEV), because, as I had been expecting, the iMCSI Emerging Markets Index Fund (EEM) broke down from a consolidation triangle.

What was notable in Wednesday's plunge was that the agricultural sector, which has been a stellar performer of late was taken out the back and shot, so to speak. It doesn't bode well for the rest of the market now that the last bastion has been taken out.

I've been looking at the UltraShort Basic Materials ProShares (SMN), ETF. It moves as twice inverse of the iShares Dow Jones US Basic Materials Sector Index Fund (IYM), and has a high correlation to the Select Sector SPDRMaterials (XLB), ETF. It just broke decisively from a downtrend channel so may still have some room to run.

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