Quote:
Originally Posted by OMG!WTF!
I think this bounce was a reaction to the overwhelming fear that took over the market for the last month. The TVIX went from $50 to $1000 in a month. BA was $90. That's going to drive some long attention under any circumstance. The market knows we're in for a brutal April with thousands of deaths and millions sick. But the selling was well over done. So I don't think this is the bottom either. But it might be.
If you want to short via an ETF Google short etf's and pick one. The most common ones I've seen are SDOW SDS and SQQQ. VXX TVIX and UVXY are other ETN'S reflecting fear via options market derivatives and they also usually move in an inverse relation to the equity market. Although it's really interesting to note that the VXX has moved up along with the markets over the last two days. Strange. Probably not a good long sign.
You need to take note of the weighting given the etf...1x's 2x's 3x's. And also note that holding these over time will diminish their value...Google etf decay if you're interested.
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I always find you have to really be careful with the 2x, and 3x etf's as unless you time them perfectly, you never make as much as you think you will. I find the longer you hold them and wait for the 'dip', the more the leverage eats into your potential gains. So unless you know the market will dip in the next week or so, they can be quite punitive in terms of the risk. Thats my experience with them anyway.