There's an Article in Barron's regarding some of the dangers of leveraged ETFs. Since you have to have subscription access, here is the link to The Big Picture's write-up.
I've used these before for the short-term because of market concerns and while they can be effective, it is somewhat buyer beware as you do give-up some of the upside potential via their market mechanisms (i.e. futures and options instead of a pure short play). They can be valuable in small doses as a cheap and easy hedging solution as well.
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