SDS trade ideas
BUY LIMIT SDSLook at the top of the 3810-3900 previous inflection point for the S&P 500 index.
The important support will continue at 3702 during the period this week.
The next important support level is 3509,Which is a 50% retracement of the full height from the 2020 pandemic lows.
- The last VIX high at 35.05, the close below 32.05 is a buy signal for the indices,
(The analysis fails if the index breaks the bottom of the price 2312.4)
my best wishes
SDS SPX Short S&P500 Is The US market crash coming ?Is The US market crash coming ?
We have 3 types of “crashes”
Correction <15% downward movement in a major indicy
Bear Market <20% downward movement in a major indicy
Black Swan event, something very unexpected that tanks the market, think 1987, 1929, challenger disaster, 911 and so on.
The fourth type is the 1919, 1929, 1999 and 2008 scenario that people generally refer to as a “crash” 2022 a new one ?
Sincereley L.E.D In Spain 14/05/2022
Expecting Another Up Gap WeekendGet it while the gettin's good before after hours trading is closed because SPXU, SDS, TZA and any other ETF's you can think of that short the market will likely up gap over the weekend just like they have the past 2 weeks. Especially in light of China's response to the US...."We aren't interested in negotiating right now."
This is not financial advice - it's my own current strategy - good luck with your trades!
Why I'm Shorting the S&P 500Macro-economic Overview
Essentially, it’s looking like the bear market is becoming more probable month after month. Tons of macro-economic bearish signals:
Euro economies taking hits (Germany narrowly avoided a recession last quarter but has seen 0 growth; UK recession looming as well especially w/ no Brexit deal)
We’re currently in the longest US economic expansion ever. What goes up, must come down.
US-China trade deal going sour.
Manufacturing production going down.
The Fed raised interest rates several times last year.
The list goes on and on. And that’s without me even looking at a chart.
What exactly is going on here?
When we look high-level at the charts (see above video for technical analysis) , at the end of 2018, the US stock market took its biggest plunge (-20%) since the financial crisis… Now, we’ve climbed back to the previous high for the third time and are again struggling to break through it.
What appears to be propping up our economy despite these bearish signals is lip service: Statements by Trump like “Our economy is in its best state ever!” and “We’re gonna have an epic trade deal with China!” And statements by the Central bank saying that they are not going to raise interest rates again until 2020.
But covering the wound is not stopping the bleeding. The blood is accumulating and there is a point when it starts to leak. We don’t know what specific event is going to trigger the blood to gush this time around. In 2001, it was the tech bubble. In 2008, it was the lack of regulation in Wall Street and the housing bubble. In 2019/2020, it could be a failed China deal, the Fed reneging on their promise not to raise rates this year, or something we haven’t caught wind of yet…
Perhaps the specific trigger is worth speculating and helpful for folks who want to say, “I called it!“, but at the end of the day - the bearish signals are very clear. And big money knows it, else we wouldn’t hit the same price peak 3 times in a row over the course of 18 months and still fail to break through it. 18 months is quite a long time to maintain the same peak in a bull market. That is a clear bearish signal.
Our Opportunity
We’re in an advantageous position where we can see the red writing on the wall, we can see the blood beneath the bandages, but prices don’t reflect it yet. This is when smart money enters. The masses wait for headlines to say "We've entered a recession." Let's think like smart money, not the masses :)
I'm Long and That's The Short Of ItWhen we see the market open on a news induced low like today, SDS is a good ETF day trade to keep in mind. What you are doing in essence is shorting the S&P 500 as a hedge against your daily losses (I'm doing GREAT today).
It's also a great one to hold as a hedge against a recession if you a long term investor; it's recent creation and history is interesting and is a good read. When the housing bubble popped, at the height of the recession in 2008 it reached upwards of $2,000.00
There are others that are great to hold entering recessions and times where you might want to hedge against interest rates as well. You might want to look into the Direxion Daily 20+ Yr Bear 3X (TMV), the ProShares Short 20+Year Trsry (TBF), and the ProShares UltraShort 20+ Year Trsy (TBT).
Good luck out there!
Shorting the S&P like a bossGetting ready for the floor to fall out from under our extended bull market.
This is gonna be a great place to chill and gain from the losses in the S&P 500 index.
I expect the S&P could lose up to 20-30%, which would also put us over the needed 20% for a bear market to ensue.
ABC correction is beginning here after this wave 5.
Buying in @ $40-41