Bulls Hiding Behind Bears | Seeking Alpha
Eric Parnell has written a very good article about how to make the best of bear markets. It is like he said, the next bear market could come tomorrow or three years from now. We need to have a plan to cover different scenarios.
First, when the bear does arrive, there will be many signs and ample time to get most of your money to safety. Not all sectors will immediately decline. Staples, XLP, will be one of the last sectors to fall. Several short ETFs can also make you a lot of money on the trip down: SH, DXD, SQQQ, FAZ, SDOW, and TZA.
Secondly, Eric mentioned that there will be double-digit tradeable rallies a number of times while going to the bottom. $NYMO, the NYSE McClellan Oscillator, can show you when to buy oversold conditions, such as -60 or lower on the chart. Just be certain that you buy quality stocks or indexes for the rallies, and sell once you are 10% up to assure you make a profit.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment