One of the things I have been asked, and have seen in headlines over the last week, is whether or not this rally is for real. My answer? It’s too early to tell.
If you’ve been following this column over the last month, you’ve likely made some money by shorting the Dow Jones Industrial Average.
The Dow can drop for a ton of reasons – from business conditions deteriorating to the VIX rallying higher – both of which I’ve discussed before.
It doesn’t take a rocket scientist to figure out that if business conditions are deteriorating, then the economy must be weakening.
It’s a widely known that dogs have the capability to sense fear. In that regard, I consider myself a Pit Bull. I can sense fear in the market from thousands of miles away.
With over a trillion dollars in bank losses and foreclosures, bankruptcies, and unemployment all ticking higher by the day, you can be sure that the stock market should head down… over the long-term. But over the short-term, anything can happen…
When the bulls rule, it’s pretty easy to make money in the stock market. But The Sovereign Society’s investment director, Eric Roseman, says the next several years will be rough for global investors. That’s why successful investors will need to learn how to embrace short selling and hedging to protect their portfolios…
For seasoned traders, a major downturn is simply another opportunity to make money, says Andrew Snyder at Today’s Fincial News.
And the U.S. is experiencing nothing if not a major cyclical downturn right now. Oil is still double the price it was last year, house prices are tumbling, and inflation and unemployment are on the up.
The best way to play this situation is to short the major ETFs that track the U.S. stock markets the next time the indexes flirt with bear terrritory. Andrew recommends shorting the PowerShares QQQ or the Diamonds Trust ETF...
Like Cherry Blossoms in Spring… Believe it or not, we aren’t all philistines here at Taipan. Some of us are culture-loving poets with sensitive souls… like our very own options guru Adam Lass, for example. After a new round of falsehoods from Washington, Adam felt the need to express himself with a haiku.
