The first place to turn is to what goes up when the market goes down. A great place to turn are to inverse ETFs. These useful trading products go up when the underlying asset they are based on goes up. For instance, SPY is the oldest and most traded ETF that is based on the S&P. When the S&P goes up, SPY goes up, when the S&P goes down, SPY goes down. But the cost of SPY is significantly less than the cost to buy one of each of the stocks that make up S&P. That makes trading the price moves of this index way easier and more accessible.
But, an inverse ETF acts like you might expect. SPXU is an inverse ETF based on the S&P. When the S&P goes up SPXU goes DOWN. When the S&P goes down SPXU goes up. Take a look at this list of ETFS:
The ETFs listed in the bearish section are trades to consider as the market falls. Take a look at what SPXU looked like last week:
When the market tanked, SPXU shot up. This is the kind of of tool you need as the indexes lose their footing and begin to slide. As we keep an eye on how the market will react to last weeks drop, definitely start to explore trades using these amazing ETFs.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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