Showing posts with label inverse funds. Show all posts
Showing posts with label inverse funds. Show all posts

Sunday, November 6, 2016

Just before the election: Why the Market Will Soar on Monday

If you're betting that Hillary Clinton will win as expected, put some capital into inverse VIX products (XIV and SVXY).  During the first week November, the VIX soared to over 20 to close at 22.51.  If Clinton wins, the VIX will probably come crashing down.

Why the market will soar on Monday, November 7th, 2016
No charges after new FBI review of Hillary Clinton emails

Impact of Uncertainty Is Likely to Ease After Election Day (WSJ)

XIV closed at 33.28 on Friday, 11/4, but it's likely that with inevitable VIX decay (and a Clinton win) that it will go above $40 before the next significant VIX spike that pummels the price of XIV.

However, if you're betting against the grain that Donald Trump will win, you could short some of the indexes by purchasing SQQQ, SDOW, .  To protect yourself against significant loses, you may want to put some funds into the inverse of the shorts and also inverse VIX instruments.

3 month XIV chart (inverse VIX) leading to November 7th (Monday).


Thursday, January 21, 2016

Day Trading Opportunities for January 2016.

Market fluctuations can offer excellent day trading and swing trading opportunities.


TQQQ
Provides 3x the performance of the NASDAQ.
Thursday, 1/21 range for the day 79.86 - 86.01
Wednesday, 1/20 range for the day 73.91 to 83.88



SDOW
If you find indications that the market (Dow Jones) will drop during a trading day, you can short the performance of the Dow with this fund.
1/21/16 range: 22.25 - 23.78
1/20/16 range: 23.09 - 24.76




UWTI
If you think oil is going to go down, then up during the trading day, UWTI can yield nice gains in a single day.  UWTI is designed to have a 3x performance of the U.S. price of oil.
1/21/16 range: 1.50 - 1.86

UWTI on 1/21/16


SCO
If you think oil is going up, then down in the same day, keep an eye on SCO.  It does a 2x short of the price of oil.  The SCO and SDOW charts for the week of January 14 to 21 look very similar.
1/21/16 range: 201.56 - 237.40