ProShares UltraPro Short Russell 2000 ETF (NYSE: SRTY) had the biggest loss among the ETFs today. SRTY dropped 11.36%, as Russell 2000 gained 3.81%. Direxion Small Cap Bear 3X Shares (ETF) (NYSE: TZA) also tracks the Russell 2000 Index, and it dropped 11.19% in today's trading session.

Direxion Daily Financial Bear 3X Shares(ETF) (NYSE: FAZ) closed lower for the second day in a row. FAZ fell 10.94%, as stocks like Bank of America (NYSE: BAC) and Wells Fargo & Company (NYSE: WFC) rallied today. BAC gained 6.08%, and WFC added 4.71%.

Direxion Daily Energy Bear 3X Shares(ETF) (NYSE: ERY) was hurt today by the rebound in the energy sector. ERY lost 10.68%, and in the space, Halliburton Company (NYSE: HAL) spiked 5.39%.

Direxion Daily Emerging Markets Bear 3x Shares(ETF) (NYSE: EDZ) dropped 10.45%, as Vale (ADR) (NYSE: VALE) and Petroleo Brasileiro SA (ADR) (NYSE: PBR) showed some strength. VALE gained 6.06%, and Petroleo Brasileiro (PBR) added 5.16%.

Here is the ETF Professor's ETF Watch List for Tuesday August 31, 2010.

Not expecting much in the way of bullish sentiment on the last day of what has been an ugly month, the ProShares UltraShort S&P500 (NYSE: SDS) and the ProShares UltraShort QQQ (NYSE: QID) look like fine ideas.

The ProShares UltraShort MSCI Brazil (NYSE: BZQ) was up more than 5% on Monday.

With steel ETFs looking weak, the Market Vectors Steel ETF (NYSE: SLX) should be on your list.

Financials just look pathetic so put the Direxion Daily Financial Bear 3X Shares (NYSE: FAZ) and the ProShares UltraShort Financials (NYSE: SKF) on your list.

Make the Vanguard Extended Duration Treasury Index ETF (NYSE: EDV) your bond play for the day.

It's hard to ignore the Yen's strength, so keep an eye on the CurrencyShares Japanese Yen Trust (NYSE: FXY) again.

The Market Vectors Russia ETF (NYSE: RSX) could be a good short as oil prices continue to struggle.

The stock market indices suffered a nasty spill in a very negative session today. They gapped lower at the opening, went down sharply in the morning despite a 15-minute bounce, and then rolled over hard to the session lows just before noon when they tagged 1811 on the Nasdaq 100 and 1070.66 on the S&P 500.

At that point they were steeply oversold intraday, and managed to stage a countertrend rally, more of a corrective-type move, that saw the NDX bounce back in a 3-wave move that took it from 1811 to 1830. The SPX at that point moved from the 1071 area to just under 1080, but resistance at 1830 NDX and 1080 SPX proved formidable, and they pulled back in the last hour and closed solidly negative today.

Net on the day, the Dow was down 144.33 at 10,271.21. The S&P 500 was down 18.53 at 1075.63, and the Nasdaq 100 down 27.80 at 1823.00 even.

Advance/declines were about 5 to 1 negative on the New York Stock Exchange and 4 to 1 negative on Nasdaq. Up/down volume was about 12 to 1 negative on New York with total volume that crossed 1 billion today on some late volume. Nasdaq wasn’t quite as bad, but was about 5 to 1 negative with total volume of just under 2.1 billion shares.

TheTechTrader.com board was nearly all negative except for just a few issues, and obviously the ultra-shorts. Leading the way to the downside, Google Inc. (GOOG) lost 14.18 to 467.97, Apple Inc. (AAPL) 3.19 to 249.88, Amazon.com Inc. (AMZN) 2.08 to 127.57, Transocean Ltd. (RIG) 1.77 to 52.31, Goldman Sachs (GS) 2.15 to 147.05, Cirrus Logic Inc. (CRUS) 1.31 to 17.54, Cree Inc. (CREE) 1.49 to 58.23, BP Exploration plc (BP) 1.06 to 36.24, and Acme Packet, Inc. (APKT) 1.33 to 31.45.

Ultra-long ETF Direxion Daily Financial Bull 3X Shares (FAS) was down 1.29 to 19.18.

On the plus side, leading the way was the Direxion Daily Small Cap Bear 3X Shares (TZA) up 2.76 at 37.26, the only point-plus gainer on our board.

Ultra-short ETF Direxion Daily Financial Bear 3X Shares (FAZ) gained 98 cents to 15.89, Direxion Daily Large Cap Bear 3X Shares (BGZ) 73 cents to 15.37, Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) 74 cents to 35.65, and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) 98 cents to 23.20.

In the Chinese sector, RINO International Corporation (RINO) advanced 53 cents to 16.85 and China Agritech Inc. (CAGC) 32 cents to 17.27, as several Chinese stocks managed to eek out gains today.

Today’s lows are going to be key levels to watch going forward as 1070-71 on the S&P 500 and the 1810-12 zone on the NDX appear to be key short-term support at this point.

We’ll see how it goes tomorrow.

Good Trading!

Harry

There are similarities now to the way things looked before the Fall 2008 market drop. The banks are make to sound in good condition if you listen to the mainstream media and politicians but there are signals from the IMF and elsewhere that the banks may still take another hit along with the rest of us. Beside owing gold and gold shares you can short the banks which is what associate Roger Wiegand talks about in the writings below.

Betting The Banks Take A Dive Is A Good One In Our View. FAZ is a triple short on the banks and credit. We think payday is later this month or fall.

We recommended this trade suggesting buying the shares in March of last year. The price opened at $93 ran…

The stock market indices got hammered hard on Friday, closing near the lows for the day going away. The day started out with a big gap down and then a big sell of early on.  They rallied back to resistance, failed, and began a slow but steady decline that lasted all session and ended at the session lows.

Net on the day, the Dow closed just under 10,100, down 261.41 at 10,097.90.  The S&P 500 was down a hefty 31.60 at 1064.88, and the Nasdaq 100 a whopping 52.76 at 1803.48.

Advance/declines were 4 to 1 negative on the New York Stock Exchange. Up/down volume was about 22 to 1 negative with total volume of about 1.5 billion traded. Nasdaq’s advance/declines and up/down volume were even worse, with 2343 issues down and 316 issues up, more than 7 to 1 negative. Up/down volume was more than 2 billion on the downside, 145 million on the upside, about a 15 to 1 negative ratio.

So, it was nasty day today on Wall Street.

TheTechTrader.com board, as a result, was very negative. Leading the way down was Google Inc. (GOOG) with reported earnings that disappointed Wall Street, down 34.41 at 459.61.

Other losses of note were Transocean Ltd. (RIG), down 2.62 at 52.98, BP Exploration plc (BP) 1.82 at 37.10, Amazon.com Inc. (AMZN) 3.57 at 118.49, and Apple Inc. (AAPL) 1.55 at 249.90.

Valassis Communications Inc. (VCI) was down 1.40 at 29.39, RINO International Corporation (RINO) 1.03 at 13.02, Dendreon Corp. (DNDN) 1.16 at 31.29, Cree Inc. (CREE) 3.15 at 65.12, and China Automotive Systems Inc. (CAAS), in a weak Chinese sector, down 1.27 at 17.14. Acme Packet, Inc. (APKT) lost 2.08 at 29.75. In addition, the ETF ultra-long for financials, Direxion Daily Financial Bull 3X Shares (FAS) was down 2.80 at 20.14.

On the plus side, the highlight for the day was new issue RealD (RLD), which jumped 3 1/2 points after its IPO, up 3.51 to 19.51.

In addition, several ETFs were very strong today, including Direxion Daily Small Cap Bear 3X Shares (TZA) up 3.82 at 39.27, Direxion Daily Emrg Mkts Bear 3X Shares (EDZ) up 3.64 at 44.26, Direxion Daily Large Cap Bear 3X Shares (BGZ) 1.27 at 16.30, Direxion Daily Financial Bear 3X Shares (FAZ) 1.71 at 15.81, and iPath S&P 500 VIX Short-Term Futures ETN (VXX) 1.67 at 27.37.

Stepping back and reviewing the hourly chart patterns, the indices were down from the get-go and sharply so in the morning. The angle of decent eased a bit, but still continued lower all day and closed near the session lows in a very bad day on Wall Street.

Good Trading!

Harry