Chart Courtesy of StockCharts.com

As the stock market wobbles, two potential beneficiaries are emerging, the Ultrashort China ETF (NYSE: FXP) and the Ultrashort Real Estate ETF (NYSE: SRS).



Chart Courtesy of StockCharts.com



Markets rise and fall. And in this day and age, investors have plenty of options as to how to play the dominant trends. To us it looks as if we may be seeing some trends change in the not too distant future. One is China and the other is commercial real estate.

If we're right, and the stock market has topped, both these areas should provide potential for big gains on the short side.

Both ETFs have bottomed and are forming bases. Both are very inexpensive. And relatively speaking, the chances of them breaking to new lows are quite low, given the length of the bases that they've formed, and the toppy looking stock market.

Tighter monetary policy in China, and a worsening real estate situation in the U.S. are likely to contribute to the problems faced by the market.

What's the bottom line? This is a good time to add both of these ETFs to a watch list and to keep a very close eye on the developments in the markets, in politics, and on how these ETFs respond to those developments.

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