Sorry, I didn’t mean to imply that S&P 500 index is the only index worth shorting. For example, I’ve certainly noticed the NASDAQ is taking more of a beating than the S&P 500.
Do feel free to look ProShares’ short ETF’s that cover a wide range of indexes beyond the S&P500. Also do look beyond ProShares, as there are certainly other financial instruments to short this market. Post what you find so I can learn also.
However, choose such short ETF’s with caution and full knowledge of what you are buying. For example, when you buy a 2X leveraged market inverse ETF like “SDS” you are buying a very risky item, essentially you are buying a basket of short and OPTION positions – which is how they achieve the 2X leverage. If the market starts rising fast, of course SDS will fall TWICE as fast in response, which can quickly destroy a portfolio if you’re heavily weighted in SDS.
Also, if you are buying inverse ETF’s after the indexes have lost 10% in matter of ten days, you had better expect possible market bargain hunters may come in any day now and dominate the market for a short period (pushing the indexes up say 5%). You might buy today and find two weeks later the bargain hunters moved the markets up 5%, taking your SDS position DOWN 10% which will scare you. Then three months later you might find the markets are say 10% LOWER than they are today, putting that same SDS position UP 20% from today. I am just saying be ready to handle some rough water if you are buying inverse ETF’s.
Having said that, I’m stunned the markets are falling today. I think anyone would have expected an UP day after so many down days.
