China is making preparations for the ultimate demise of the dollar … and so should you. Stories knocking the dollar never get much exposure in the mainstream media (many outlets wrongly consider it unpatriotic to bash the buck).
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.
Stocks stage huge rally, but will it hold? Key levels to watch, and some historic perspective… Libor continues to ease; famous Wall Street CEO explains why credit still isn’t flowing… John Williams on the “true cost” of the U.S. financial crisis, with charts to prove it… Byron King with an “exploding” foreign resource market…. Plus, a stinging critique of I.O.U.S.A., and one thing you must do before voting Nov. 4.
The Nasdaq dropped 2% yesterday as widespread panic pulled down equities across the board. However, Paul Moore says tech stocks offer good long-term opportunities. He says the best way to hedge risk on individual company shares is with put options. Alternatively, tech-sector ETFs or a market index such as PowerShares QQQ Trust (NASDAQ:QQQQ) will diversify risk across the industry.
It’s hard to believe that last Monday the Dow surged by 289 points on news of the feds’ rescue of Fannie and Freddie. Today traders are in full panic mode. They have sent Dow futures down by 342 points, leaving the index at 11,109.
Rick Pendergraft advises investors to do one of two things: “If you are a long-term investor, ignore most of the news unless it affects one of your stocks in particular. If you are a short-term trader, take profits quickly and take losses even quicker.”
Buying an inverse ETF that profits as the market drops is also a sound way to insure against losses…
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...
Paul Moore is a new tech investing expert with The Smart Profits Report. He says the best way to beat the bear is to follow the money. In a bear market cash is king. It allows companies a number of options that support their share price…