I'm new to trading ETFs but have explored leveraged inverse ETFs like SH, SQQQ, SDOW, SPXS,SPXU, and the UVXY ETFs. Any opinions on what is most likely to return a profit if the market decline that has begun continues and worsens with ongoing geopolitical events, fed rate increases, and leveling off of demand?
SQQQ, the reasoning is in a down turn many may hold or buy what is considered quality Blue Chip and sell what will then appear to be overvalued high flyers on nasdaq. Or at least that was the thinking back then. Now dow and spy and qqq are all so interrelated globally that they will all go the same way, some more than others, but probably after the kind of move you are looking for it won't make much difference. 2 edged sword, if you are wrong qqq will hurt you the most IMO.
Thank you. I noticed that SPXS the Direxion -3x S&P 500 had a huge net outflow but the SPXU Proshares -3x S&P 500 had a modest net inflow in the same time period. Any clue what the disparity for essentially the same type of fund?
I have about 600 shares in SQQQ so hope the market crashes on Monday or over the next month. I'm not selling until I make at least 10%, and if it drops I'm buying another 600 shares up to 3000.
%% Yes SQQQ ,SPXU, SDS,FAZ,SPXS..... most likely will not pay off, much @ all ; unless we get in a bear market, defined like IBD does, below 200 day moving average.As far as geo events, panic sellers never win, JeffS,so dont count on that. Wisdom is profitable to direct. NOT a prediction[ 200 dma on SPY; SPXU.... tend to keep going down in uptrending SPY, which is the main trend-UPtrend]. If market -sell in May, hey ,could get a up tick/ticks, on SPXU...........................................................................]
SEC approves request to list and trade quadruple-leveraged ETfs May 2 (Reuters) - The Securities and Exchange Commission on Tuesday approved a request to list and trade quadruple-leveraged exchange-traded funds, marking a first for the growing market for such funds in the United States. The request to list ForceShares Daily 4X US Market Futures Long Fund and ForceShares Daily 4X US Market Futures Short Fund was filed by Intercontinental Exchange Inc's <ICE.N> NYSE Arca exchange. One of the funds is designed to deliver 400 percent of the daily performance of S&P 500 <.SPX> stock index futures, while another fund will aim to deliver four times the inverse of that benchmark. (Reporting by Trevor Hunnicutt in New York; Editing by Leslie Adler) ((Bhanu.Pratap@thomsonreuters.com(within U.S. +1 646 223 8780, outside U.S. +91 80 6749 3581)() Keywords: SEC ETFS/
%% Sounds like a good idea, not to buy + hold but trade or invest for a short or med trend. NOT a prediction