Well, that didn’t last too long. Worries about Greece exiting the Euro, despite the G8’s plans to keep it in the, and the World Bank saying China’s slowdown will suck in the rest of Asia has stock futures bleeding red, again.
Add in the NASDAQ and Morgan Stanley shaking up investor confidence with the botched Facebook, Inc. (FB) IPO, along with a Dell Inc. (DELL) earnings disaster and you have the recipe for Wall Street to wipe of the week’s meager attempt at a comeback – sorry L.L.
Top Equity News believes it adds up to an eventual trip for the NASDAQ, Dow, and S&P to their 200-day moving averages, 2745, 12,210, and 1279 respectively.
Investors have a couple of ways they can handle turmoil and actually profit if troubles persist as TEN believes will be the case for the foreseeable future. During the downfall, the NASDAQ has fallen faster and harder than its peer indexes, it also rallied more strongly in the blip of a rebound.
We don’t expect that to change. If you are worried about downside and don’t want to short stocks, then inverse ETFs like ProShares Short QQQ (PSQ) or ProShares UltraShort QQQ (QID) will turn red to green.
PSQ seek to return the opposites of the index, meaning that if the NASDAQ 100 drops 2%, then PSQ will gain roughly 2%. QID, on the other hand, add in leverage and its objective is to double up the NASDAQ 100. Should the index drop 2%, QID would put approximately 4% on your bottom line.
Remember, however, that it goes both ways. If the NASDAQ 100 heads higher, you’ll lose the opposite or twice the index’s gains, depending on which ETF you choose.
Shorting stocks is more difficult and requires that you have a margin account, pay interest, and the short candidate must be margin-able and approved for shorting. We’ll have some short ideas in the days ahead of stocks continue to slide.
Stock Market Trends: Profit from a Trip Down to the 200-Day Moving Average is an article from: 
