Wednesday, January 19, 2011

Shorting Emerging Markets With HJD.TO

I bought 500 shares at 8.54 of HJD.TO today. This is the 2x leveraged MSCI Emerging Markets ETF. For every 1% the EEM index below goes down, this ETF goes up 2% or the reverse. It's extremely thin volume so the spread is wide sometimes but I it should do well if the Emerging Markets roll over which is what I am hoping.
This is the iShares MSCI Emerging Markets ETF traded in the US markets. Since I can't short with my TFSA account, I have to buy the inverse ETF and the only one that's available in Canada is the HJD.TO above. The trendline has not broken yet so I am jumping the gun a bit but I think the markets have peaked or very close as in a couple of days.

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