GET DAILY SIGNALSProShares UltraShort Consumer Discretionary (SCC) Declines -11% as Sector Rallies
Key Takeaways
- SCC has fallen roughly 11% over the last 30 days, reflecting its role as a -2x inverse bet against the consumer discretionary sector.
- The decline accelerated after Amazon's strong quarterly results and a broad post-election rotation into consumer discretionary stocks.
- SCC seeks daily investment results equal to -2x (200% inverse) the performance of the S&P Consumer Discretionary Select Sector Index.
- Amazon and Tesla dominate the underlying index, meaning SCC is highly sensitive to those two names.
- Over the last quarter the fund is essentially flat, masking a sharp round trip higher and then lower.
- Because the fund resets daily, it is designed for short-term tactical use and can diverge from -2x index performance over longer periods.
- For additional detail, explore SCC Price Targets and Forecast on dedicated analysis pages.
- Explore Trending AI Robots for systematic, AI-driven trading ideas.
SCC Overview and Portfolio Exposure
SCC is an inverse leveraged exchange-traded fund managed by ProShares. Its objective is to deliver daily results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the S&P Consumer Discretionary Select Sector Index. The underlying index is a market-capitalization-weighted basket of consumer discretionary companies in the S&P 500.
The fund has a net expense ratio of 0.95% and is classified as non-diversified. It does not hold the underlying stocks directly but uses a small number of positions, primarily total-return swap agreements, to achieve its inverse exposure. Net assets are modest, and the fund has been operating since 2007.
The index is heavily concentrated in Amazon (AMZN) and Tesla (TSLA), which together make up roughly 40% of its weight. Other holdings include Home Depot (HD), McDonald's (MCD), Lowe's (LOW), Booking Holdings, and TJX Companies (TJX). This concentration means SCC's daily moves are driven largely by those two names, amplified by the leverage.
Price Performance: Last 30 Days Versus the Quarter
Over the trailing 30 days, SCC declined approximately 11%, moving from roughly $15.87 to about $14.13 on an adjusted basis. The drop was not steady; the fund drifted lower through late October before accelerating in early November as consumer discretionary stocks rallied.
Over the last quarter the picture is flatter. Measured from early August, SCC is essentially unchanged, down less than 1%. That modest net result hides noticeable volatility, with the fund rising from around $14 to a peak near $16.61 in early October before giving back the gains as the sector rebounded.
What Drove the Recent 30-Day Move
The main driver was a rally in consumer discretionary equities, which produced roughly double the loss for a -2x inverse fund on a daily basis. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The catalyst came from Amazon's (AMZN) latest quarterly report, which showed accelerating cloud growth and record operating margins. Combined with easing bond yields, that helped re-rate the sector. Momentum picked up after the November election results, triggering a broad risk-on rotation that favored consumer discretionary names. Home Depot, Lowe's, and McDonald's posted sharp gains, and Amazon climbed on renewed cloud enthusiasm.
Because Amazon is the largest index constituent, its gains weighed heavily on SCC. Tesla (TSLA), the second-largest holding, moved lower on regulatory and merger concerns, which provided some offset, but Amazon's weight overwhelmed that cushion.
Quarterly Performance Influences
The quarterly trend reflects sector rotation more than any single event. During the summer and early fall, consumer discretionary lagged, with Tesla under pressure, which supported SCC and pushed it toward its October high. As bond yields eased and sentiment improved, the sector rotated back into favor.
Broader forces reinforced the shift. Cooling inflation expectations, a more supportive rate backdrop, and resilient consumer spending all favored discretionary names. Institutional flows and a rebound in large-cap growth stocks erased SCC's earlier gains, leaving the fund roughly flat over three months.
Outlook: Factors to Monitor
Several elements are likely to shape SCC in the months ahead. The path of Amazon and Tesla will remain central given their combined weighting; earnings revisions, cloud growth, and Tesla-specific headlines can move the fund materially. Interest rates and bond yields also matter, as lower yields tend to support discretionary valuations and pressure inverse positions. Inflation data, retail sales, and consumer confidence will indicate whether sector momentum can continue.
Investors should keep in mind the fund's daily-reset structure, which makes it suitable for short-term tactical use rather than longer-term holding. Returns can diverge from -2x the index over extended periods due to compounding. Capital flows, holiday spending patterns, and any renewed volatility in consumer discretionary leadership are additional items to watch. The interplay of consumer fundamentals, monetary policy, and large-cap technology sentiment will likely remain central.
Using Tickeron’s AI Screener in My Research
When analyzing leveraged ETFs like SCC, I sometimes turn to Tickeron’s AI Screener to quickly compare technical setups and volatility metrics across similar inverse products. It helps surface candidates that match specific risk profiles or sector themes without manually reviewing dozens of funds. The platform has become a regular part of my workflow for idea generation on both equities and ETFs.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SCC sees its Stochastic Oscillator recovers from oversold territory
On November 06, 2026, the Stochastic Oscillator for SCC moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 66 instances where the indicator left the oversold zone. In 58 of the 66 cases the stock moved higher in the following days. This puts the odds of a move higher at over 88%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SCC's RSI Indicator exited the oversold zone, 22 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 81%.
Following a +7.76% 3-day Advance, the price is estimated to grow further. Considering data from situations where SCC advanced for three days, in 246 of 286 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.
SCC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SCC as a result. In 78 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 90%.
The Moving Average Convergence Divergence Histogram (MACD) for SCC turned negative on October 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 41 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
SCC moved below its 50-day moving average on October 26, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SCC crossed bearishly below the 50-day moving average on October 23, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 82%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 89%.
The Aroon Indicator for SCC entered a downward trend on November 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Industry description
Advertisement
General Information
Category Trading
Advertisement