Trade Alert – (YCS) August 27, 2012

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.

Trade Alert – (YCS)

Buy the ProShares Ultra short Yen ETF (YCS) at $42.09 or best

Opening Trade


Portfolio weighting: 10%

($10,000/$42.09) = 240 shares

I think we are at the top of a multi month range on the Japanese yen (FXY) and the bottom of the range for the (YCS). So I think this is a great entry point for a short yen play. However, I don’t want to increase my leverage on a short (FXY) call spread and risk a blow up there. Therefore, I am going to add a more conservative position with the (YCS) ETF, which only has a 200% short position in the underlying yen cash. I will look to sell this next time we pop up to the $43 level.

If you want to learn about the fundamentals behind this trade, please refer to the umpteen pieces that I have written about the coming demise of the Japanese economy. Just go to my website at and put “Japanese yen” in the search box.

If you find yourself running out of margin, take profits on the (TLT) short put spread where we have already reaped most of the profits. You can also sell the deepest in the money call spreads with the largest profits, which we have several.

Sorry, Madame, But Your Fundamentals Suck