Greece, the problem that won't go away, can generate profits instead of disaster for nimble investors.

Greece and the euro zone have been in the news forever, it seems, as the Continent lurches from one crisis to another. Much has been written about the dangers but very little has been discussed about how to profit from what seems to be an unavoidable meltdown in Europe.

In my view, investors are missing out on potential opportunities here because every crisis generates an equal opportunity; in every market there are two sides of the trade as some people lose and others win.

Finally, great dislocations often times are accompanied by great opportunities, and I believe that the continuing situation in Greece and Europe is going to be a global dislocation that will likely generate tremendous volatility with concurrent enormous short term profit opportunities.

Here's a quick rundown of where we are now:

1. New elections are to be held on June 17 and apparently the tide continues to turn in favor of the antiausterity Syriza party, which says it won't approve the austerity measures already negotiated with Europe.

2. The G-8 meets this weekend with Greece and Europe at the top of the agenda. German Chancellor Merkel reportedly wants Greece to have a referendum on staying in the euro while she and newly elected French President Hollande met to discuss their divergent approaches to solving the European crisis.

3. World stock markets continue to sell off, along with the eurodollar as investors fret over the possibility of Greece leaving the euro zone and eurodollar and what that might mean for contagion and global financial stability.

So the dangers seem clear, but dangers bring opportunity and so here are some ideas for seeking profits should the worst come to pass in Europe:

1. PowerShares Bullish Dollar ETF UUP, -0.47% : The dollar has been on a sharp rise, up approximately 3% since the beginning of May. Many experts predict that the euro will continue to fall and the dollar will continue to rise as the "flight to safety" trade continues.

2. ProShares UltraShort Europe EUO, -1.29% : This ETF is designed to track 2X inversely to the eurodollar and is up about 7% since early May. Many analysts forecast that the euro will continue to drop and some are even saying that the euro could once more reach parity with the dollar as investors flee for the safety of other currencies. Leveraged ETFs are tricky to use as they readjust daily and compounding of gains/losses can work for or against you, and so you must fully understand these products before venturing into these waters.

Another, more straightforward option for a "short" position against the euro would be to short CurrencyShares EuroTrust FXE, +0.60% , which has declined more than 3% since the beginning of May.

3. iShares 20+ Year Treasury Bond TLT, +0.11% : U.S. Treasury Bonds have been in a sharp uptrend in recent days along with the dollar, and this fund has gained nearly 6% since the beginning of May. Long-dated Treasuries are now near record highs, and 10-year Treasury yields are at record lows so the bond market is clearly in a panicked state over the future of the global financial system.

4. Active Bear ETF HDGE, +0.89% is up approximately 15% since the beginning of May. This ETF actively shorts various U.S. companies and current holdings include Goodyear GT, -1.29% , SanDisk SNDK, Rockwell COL, -0.70% and Green Mountain Coffee GMCR. This ETF comes with a management fee, however. If Greece implodes, it is quite likely that the ripple effect will spill over into the United States and take U.S. stock markets lower than it already has and this ETF is a good way to get short exposure in the U.S.

So, danger always brings opportunity. At Wall Street Sector Selector we currently hold positions in TLT and HDGE, among other positions designed to profit from further problems in Europe and we see the likelihood of lower global equity prices and continued flight to quality as we head toward the climactic Greek elections in June.



Wall Street Selector owns positions in HDGE and TLT.







