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ETF Trader ETF Trader


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                                            Doug Fabian’s

Ranked in the
 top 10 out of
                                  ETF Trader
184 newsletters
   in 2008 by                             Weekly Electronic Trading Service
Hulbert Financia

ETFs are the most powerful tool there is
for individual investors… but only if you
 know how to use them the right way.
   Discover the secrets to ETFs’ power and you could triple your returns this year.

 Dear Fellow Investor,                                                  Of course, the system I’m about to show you isn’t for
                                                                      everyone. It’s not a “buy and hold” strategy. But it isn't
    My name is Doug Fabian, editor of ETF Trader.
                                                                      day trading either.
 I’ve achieved a lot of “firsts,” but one of my most
 profitable firsts is exchange traded funds (ETFs).                      It's all about riding the biggest waves and not
                                                                      fighting the prevailing tide... Finding investments that
   I started moving investors into ETFs long before
                                                                      take advantage of the economy's dominant themes...
 most others recognized their strength and value.
                                                                      And making just a few targeted buys each month and
    ETFs can be both the safest and the riskiest                      holding them for as little as a few days up to 60 days.
 investments in the market. It all depends on how much
                                                                        Remember the tsunami that hit between August 2008
 you know about the way different ETFs behave.
                                                                      and March 2009?
    I’m known as one of the safest, most conservative
                                                                         The S&P plunged 41%. Investors scrambled to get
 investment advisors in the business. But don't let that
                                                                      out of the market, and by year-end $8.85 trillion exited
 fool you. Being safe doesn't mean being left out of the
                                                                      the market.
 big profits. Just the opposite — you have to play it safe
 when you're after big profits.                                         Most of that money went to cash, bank deposits, and
                                                                      money-market funds, earning so little that it didn’t even
    For three decades I’ve been using the same timing
                                                                      make up for inflation.
 system, and countless investors have relied on it for
 safe, long-term market-beating returns. A couple of                     But during that same time, while the S&P was in a
 years ago I started applying the method to ETFs.                     41% death spiral, my ETF Trader subscribers pocketed
                                                                      big profits from shorting the market… without ever
    I “supercharged” my system by compressing it to a
                                                                      having to sell short!
 short-term time frame to catch and ride the market’s
 strongest trends.                                                       Without doing anything more complicated than

                                                                                                                  (over, please)

                         Eagle Financial Publications • One Massachusetts Avenue, NW • Washington, DC 20001
buying and selling a security, you could have taken        ✔ Also. . . the very moment a position has reached its
home:                                                        peak profit, I’ll send you another email that explains
                                                             my sell recommendation. I can assure you. . . you’ll
➤ 13.5% in 2 days in an ETF that shorts the Dow 30
                                                             never be left out in the dark.
➤ 14.28% in 2 days in an ETF that shorts the Russell
                                                           ✔ In addition, you’ll have 24/7 access to my
                                                             subscriber-only website, where you’ll be able to
➤ 13.46% in 15 days in an ETF that shorts silver             immediately check out our current hotline advice —
                                                             as well as our complete archives.
➤ 39.14% in 9 days in an ETF that shorts the midcap 400
                                                              My staff and I do all the work for you. We track
➤ 34.55% in 9 days in an ETF that shorts Nasdaq
                                                           every single ETF in the world and we use our
➤ 20.32% in 2 days in an ETF that shorts basic materials   proprietary indicators to help establish a direction and
  Each of those trades was executed in less than 60        our money-making recommendations.
days — some in as little as a few days!                       With markets and inflation shrinking your wealth
   Which is why plenty of investors are deciding that      more every day, you need to take advantage of ETF
trading ETFs is simply safer than trading today's stocks   Trader today. Because whether you consider yourself a
and mutual funds.                                          conservative investor or not, losing money is never an
                                                           option! Remember — you can start cashing in today...
   And… if you do feel comfortable trading options, I      and I’m happy to assume 100% of your subscription fee
give you trade recommendations that can boost your         risk.
profits even higher, with results like 26.83% in 14
days… 27.09% in 46 days… and 66.27% in 44 days.               My next ETF Trader Hotline is scheduled for
                                                           release this coming Monday — make sure you try a
Not just the most profitable trading                       60-day risk-free trial today in order to ensure you’re a
service — the simplest, too!                               part of the action. See details on the back.

   Once you join ETF Trader you’ll never need to                        With best wishes for rapid-fire profits,
worry about what stock to buy, when to buy it, when to
sell, or how to keep what you make.

   Many Wall Street firms have entire teams of analysts
that are paid to come up with just the kind of
recommendations that you get with ETF Trader.                           Doug Fabian
   Every detail has been thought out to make your                       Editor, ETF Trader
trading easy — and profitable.

✔ You’ll be confident in your trades, knowing you’ll
  receive an email from me every Monday detailing
  what action to take.
                                                                             About Doug Fabian
✔ You’ll know that your new trade recommendations                          Doug has been building wealth for
  are backed by my 32+ years of experience and a                           individual investors for more than 32
  proven system that CBS MarketWatch rates #1 over                         years. He is the editor of ETF Trader    ,
  the past 25 years.                                                       Successful Investing, High Monthly
                                                                           Income, and Making Money Alert, as
✔ Every trade alert gives you precise instructions that                    well as host of the syndicated radio show,
  are so clear you can dictate them over the phone to                      “Doug Fabian’s Wealth Strategies.”
  your broker — or do it yourself in a snap.

2    Doug Fabian’s ETF Trader
                          Doug Fabian’s

                   ETF Trader Hotline
We’ve had a lot of action in our ETF Trader portfolio since last Monday’s Hotline. First off, we were stopped out
of our position in the Energy S el ect S ector S PDR (XLE), as the fund hit our revised stop-loss price of
$55. Now, recall that on Monday, Dec. 7, we recommended that you adjust your stop on this position due to the
weakness we were seeing in the energy space.
That weakness kicked into high gear on Tuesday, Dec. 8, and hence we were stopped out of XLE just one day
after revising our stop loss. And though we ended this trade with a 6.19% loss, we managed to escape further
damage as the fund fell much lower in the days after XLE hit its stop.

The other action we took last week was to add two new positions into the portfolio. On Friday, Dec. 11, we added the
UltraS hort Euro ProS hares (EUO), an investment that seeks to replicate, net of expenses, twice the inverse per-
formance of the EUR/USD daily price change. Basically, with EUO, you are betting on the dollar’s rise vs. the euro.
We also added the Ul traS hort Fi nanci al s ProS hares (S KF). This fund seeks daily investment results, before
fees and expenses, which correspond to twice the inverse of the daily performance of the Dow Jones U.S.

Financials index. So, if financial stocks fall 2%, SKF will rise 4%. Our official buy price on EUO is $17.98,
and the official buy price on SKF is $25.19.
I really like the prospects going forward for all three of our current ETF Trader positions. After months of protract-
ed declines in the dollar vs. the euro, the dollar is way overdue for at least a trading bounce — and possibly a nice
upside move over the next month or so. If that happens, EUO will be the fund that profits big.
In terms of financials, well, these stocks have just not participated in the market rally of late. Financial stocks are
well off of their highs of the year, and I think they will continue trading lower as we wrap up the year.
Finally, our short bond position in the ProS hares UltraS hort Lehman 20+ Year Treasury (TBT) is a trend
that I see really materializing in our favor over the next month or two. The real trend here is toward rising long-
term interest rates, a circumstance ready to explode as soon as the Federal Reserve backs away from holding down

The Fed used almost every tool in its arsenal to push interest rates down during the recession, including cutting
the federal funds rate to almost zero. And to reduce longer-term rates, it bought more than $1.5 trillion worth of
Treasury bonds and government-guaranteed securities linked to mortgages. However, that buying is slated to come
to an end soon, and that means long-term rates will rise, i.e., long-term bond prices will fall. That will be good

news for TBT.
Continue holding all three of your current positions, and make sure that you have your stop-loss orders in place
to protect you against any potential downturn in these funds.
Until our next move,


CURRENT ETF ADVICE for December 14, 2009
UltraShort Euro ProShares (EUO)
UltraShort Financials ProShares (SKF)
ProShares UltraShort Lehman 20+ Year Treasury (TBT)
S top Losses:
ProShares UltraShort Lehman 20+ Year Treasury (TBT), $42
UltraShort Euro ProShares (EUO), $16.90
UltraShort Financials ProShares (SKF), $22.50
        Subscribe to Doug Fabian’s ETF Trader Today. . . see other side

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