Shorting ETF’s top the list

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What a brutal day in the stock market. It almost feels like capitulation but we might not quite be there yet. It wasn’t quite as dramatic as March 18th or August 16th of last year.

The big winners of course were the short and double short ETF’s. The who’s who showed up today in our Alpha stock picks list in the Research Lab

Note that the pick prices and the percent moves are based on the "open". The gaps each day play a lot of tricks and we are looking through this by using the opening prices each morning and measuring the percent return based on what you could have actually bought in at. It’s rare to see all four "double short the index" ETF’s in the alpha list, heck it’s downright scary if you are long this market.

——–Ultra Shorts—–
DXD 2X Short Dow
SDS 2X Short S&P 500
QID 2X Short NASDAQ 100
TWM 2X Short Russel 2000

The symbols above are the main four double-short index ETF’s. They go UP when the market goes down. Most traders know these well but I always find people that are not informed yet. There’s a few others on the list but you can look them up and see what they are all about. Not sure why SKF didn’t make the list but that’s one everyone talks about these days. SKF and UYG move inverse to each other and represent the financial stocks. Both are extremely volatile.

I’m still trying to figure out what happens to the leveraged ETF’s if something doubles but that is something to think about. Most of the chatter says you gotta trade these things, not buy and hold. Theoretically if the financial stocks double, SKF goes to zero, but that remains to be seen. For now SKF is one heck of a roller coaster ride, just what traders love.

Not for the feint of heart at all. We’re talking a 5% average daily move, and that’s after it’s settled down recently. If you trade SKF all I can say is be careful and know what you are getting in to.

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