SQQQ UVXY & other inverses: Bear trading tips

Discussion in 'ETFs' started by KCalhoun, Mar 5, 2020.

  1. KCalhoun

    KCalhoun Sponsor

    Let's discuss inverses here. Anyone else daytrading or swing trading them lately?

    Post your thoughts, questions, tips and lessons learned.

    My current swing positions are long SQQQ UVXY TVIX VXX SOXS.

    If markets keep dropping, these go up. Today 3/5 they're all gapping up nicely.

    Other inverses: SDS SPXS QID TZA FAZ

    Tip: I scale in when they take out 2day highs, eg SQQQ is not, the UVXY is. To try and avoid false breakouts, I wait til they've moved at least .30 above premkt highs before scaling in.
    Last edited: Mar 5, 2020
  2. hafez50


    Yes i swing trade them in my Ira. I play Soxs and Sqqq. Actually the Stongest 3x bear etf during the end of the bull run was tza as the russell was far weaker than other indices. I actually went heavy in Sqqq into the close on that silly ramp yesterday . Right now i'm in full bearish mode shorting the big ramps in a scaling mode for trades.
    murray t turtle and KCalhoun like this.
  3. The biggest problem with these is the daily rebalancing. In a sideways, slow market, or swingy, you'll lose just by holding. Better to short futures with leverage, no?
    I guess if it's in your retirement accounts you have no choice but need to be in and out quickly - it's for big moves only
    murray t turtle and KCalhoun like this.
  4. Theoretically, they may be good bets to a seasoned pro, but Murphy's Law tends to rule over ETFs and bear trading for me.
    murray t turtle and KCalhoun like this.
  5. KCalhoun

    KCalhoun Sponsor

    Great points, makes sense... thx re TZA, small caps will likely suffer most in coronavirus situation so i'll buy TZA at new highs.

    Held small size inverses overnight, good to see gap up today though they're fading a bit now, tightened trailing stops.

    Tip: I'm holding inverses overnight into every weekend in case of bad virus headlines causing more red mondays.

    Talking heads say these are too risky for average investors... prolly true. Right re not for longterm holds due to contango/decay.

    current opens 3/5 noon:

    Last edited: Mar 5, 2020
  6. lol Ken, and stick to odd lots?!
  7. guru


    My top strategy is trading TVIX long, 47 winning trades out of 48 this year so far.
    Last edited: Mar 5, 2020
  8. KCalhoun

    KCalhoun Sponsor

    update -- yay :)
    2:18pmET tightening up trailing stops NOW to lock in profit

    fdly5marup1k.jpg fdly5marb.jpg
  9. KCalhoun

    KCalhoun Sponsor

    3/6 these are gapping up bigtime today - nice move! i'm kicking myself a bit for selling most of my positions into yesterday's end of day close; i only held small positions overnight...doh!

    UPDATE 7:30am just bought sm size SQQQ TVIX VXX UVXY sold uwt for small stop loss

    My favorites are SQQQ TVIX



    Last edited: Mar 6, 2020
  10. There are some ETF opportunities now competitive with stocks, and I have traded ETFs before and never noticed significant ETF fees, but what is the real cost of trading ETFs compared to trading stocks feewise?

    Screen Shot 03-06-20 at 09.49 AM.PNG
    #10     Mar 6, 2020