2 Possible Short Plays To Keep On Watch
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ETF Trade Watch
Well Thursday’s trading session brought with it a lot of red. Every sector finished the day down from where we were earlier in the week. This substantial decline came after the SPDR S&P 500 ETF Trust (SPY) neared a high of 420 before losing momentum. SPY is now currently down over 2% for the week.
ProShares UltraPro Short QQQ (SQQQ)
Since yesterday has us thinking about the downside, here is another way you can take advantage of anymore selling. Inverse ETFs will allow you to take a long, short position. Meaning you would be able to go long based on the idea the market will continue to decline. As you can see by the video, the SQQQ was up by just over 2% on the day.
If the market continues to show red, then keep this ETF in mind.
SPDR Gold Shares (GLD)
Another area to look for a possible downside play is gold. After tying a few times to break and hold that 1900 mark but failing, the price of the precious metal has started to look weaker and weaker. A possible way to take advantage of any increasing weakness would be to short the SPDR Gold Shares (GLD), which tracks the price of gold. This means any decline in the actual price of gold means a decline in this ETF’s price is likely to follow.
Check out the full breakdown here…
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