Making money when the market goes down

Making money when the market goes down.

There are many inverse ETF’s available to buy when the market goes down.  The value goes up.

Let’s take a look at the SPXU which is an Ultra pro short Electronically traded Fund based on the inverse of the S&P500.  Here is a chart.

As you can see on the previous down days the SPXU moved up. When we were on the market highs the SPXU was at $60 to $61 range. We then gapped up through the market resistance and drove higher to $65.98 .

There are many opportunities in the market to make money when the market begins to fall.  Remember some of the biggest profits are made in a falling market.

As the market went down the value of this ETF went up.  This type of strong parapolic move in the hourly chart shows there could be a continuation to the next area of resistance.

Here are some things to watch out for this week:

• Monday: New Home Sales @ 10:00am
• Tuesday: Core DurableGoods @ 8:30am, S&P/CS Composite @ 9:00am, CB Consumer Confidence @ 10:00am
• Wednesday: Crude Oil Inventories @ 10:30am, FOMC Statement @ 2:00pm
• Thursday: Advance GDP & Unemployment Claims @ 8:30am, Pending Home Sales @ 10:00am
• Friday: PCE Price Index & Personal Spending @ 8:30am, Chicago PMI @ 9:45, Revised UoM Consumer Sentiment @ 9:55am  

Remember playing the news is very risky.  Trading alone is very difficult and joining a group of traders that have the same training, understanding of the markets direction and the ability to speak the same trading language creates collaboration.  Join us for a 3 day training.