Stocks to Buy If You Think the Market is About to Crash

Amid all the news of a potentially huge market downtown, there are some stocks that could reap big gains if the market does tank.

UVXY
A triple leveraged VIX tracker.  When the DOW goes down 1% or more, this stock usually soars.
Be aware that since UVXY invests in futures, there are higher taxes on this fund.  You are also not buying shares in any company when you purchase UVXY.  Best to buy this under $30 so you don't lose your shirt!  What day traders are saying about UVXY on StockTwits.

TVIX
"The investment seeks to replicate, net of expenses, the returns of twice (2x) the daily performance of the S&P 500 VIX Short-Term Futures index". 

NUGT
Sometimes when the market goes down, investors get worried and jump into gold as a "safe haven".  This stock price is determined by both the day's price of gold and the performance of gold miners. Read more about recent prices and strategy for buying into NUGT. It spiked on Jan 7, 2016 when the DOW fell about 400 points from 16,906 to 16,514.

A telltale sign that a huge market hit could be on the way...
The chart below shows a broad time history for the Dow Jones, from 1985 to present.  Look what happened in 2007 when the market grew too fast.  Based on this 6-year cycle of crashes, we could see a crash sometime in 2016.

My prediction for 2016: the DOW will fall to 15,000 to 15,250.

Patterns in the last 22 years of the DOW show that we could be in for a big market tank in 2016.

The DOW over the last 10 years.  The red line is a simple moving average and the blue line is an exponential moving average.  The last two times that that they crossed, the market fell!  What we are seeing now looks like 2008.

The DOW, 1995 to early January 2016.  Expect a big market corrections before 2017.

Articles about warning signs in the market:

RBS Warns: Sell Everything - MoneyBeat - WSJ

Dana Lyons' Tumblr — Complacent Correction Cause For Concern?

10 Stats to Put the Stock Sell-Off in Perspective - MoneyBeat - WSJ

Market Correction Could Become a Full-On Bear - Barron's

The Great Benefit of a Falling Stock Market - Barron's

Opinion from Stock Tweets about the current market:

@bellajolie Technicals are there, signs are there, we are in a bear market. Have been for a month.
— James Kim (@jameskim1980) Jan. 14 at 10:32 PM