Here’s 2 ways to go short, while going long. $SDS $QID – September 15, 2022
SDS SPY DID
This is Scott with your Chart of the Day. I want to share 2 ways that you can bet against this market by going long a stock. Now, for me personally, I don’t like shorting as in short selling. It feels wrong. I feel like I am betting against America and I don’t want to do that. So I like to maintain my strategy of buying stocks for the long side, but even doing it when I know it’s betting against the market going down.
And so there are 2 ways you can do that with a little extra juice, that’s the SDS, ProShares UltraShort S&P 500 ETF ( NYSEARCA: SDS ) here. And so what you can do is, essentially trade it like you would going long. So you are buying it because you think this is going up and, obviously, that means that the market is going down. You can see how the S&P 500 ( NYSEARCA: SPY ) is just kind of sitting on this little ledge here.
And so what I want to see from SDS ( NYSEARCA: SDS ) is, obviously, a higher high through resistance. Now, one thing that can happen is that you can kind of get clipped a little bit. Because sometimes this will go up, and obviously that means the market is going down. And then what will happen is, you get a day like yesterday. Where it kind of breaks above the previous day’s high and then gets rejected, and maybe you get taken out if you are trying to buy this breakout here.
I like this stuff only for day trades because anything can happen overnight. You can get news overnight. You can get higher opens in the market and, obviously, that would mean a lower open here on SDS ( NYSEARCA: SDS ). So this, in my opinion, is something you will want to do if you want to bet against the market, essentially, by going long something and doing it for a short-term time frame.
So SDS ( NYSEARCA: SDS ) is one that I always talk about over at StockMarketMentor.com and QID ( NYSEARCA: QID ) is another one. This is the pro shorts of the triple Qs. And so again, the same kind of setup, you want to see a break above this clearly defined level of resistance. These are just some ideas to go along while going short in this market.
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