QID - ProShares Ultra Short - NYSE

[Cosmic]

If you haven't thought about this very much, you should. Collectively we are about to walk into a buzzsaw.

If I skim read a lot of these threads on this forum, they all just about seem to deal with making money in a long position. We may be getting ready for a major market correction, problem is when and what to do about it?

I've decided to use the QID as a way of doing a gross portfolio hedge. Basically allows for you to stay if desired in certain long positions for a number of reasons, long term taxes, etc.

Lots ways to do it. Here is a bit of info of what can be used.

List of Inverse ETFs (Short ETFs / Bear ETFs) - Trader Mike

The QID is the inverse of the ^IXIC index times 2. Every dollar the index drops in theory the QID should mirror in a positive direction by two dollars. It is designed to reset daily.

The reason I selected the QID for the overall gross hedge was it has been around a while, should trade liquid enough, good bang for the buck of what I want to accomplish. In my judgement lil risk here in the QID to the down side, the ^IXIC should be more vulnerable on the downside in a panic than the DOW it usually is. My guess is the peak of ~2400 is the max they can get the ^IXIC too. I just average down in the QID a bit at a time as the situation unfolds. One way to do an attempt at timing.

The major point is DO NOT assume this market will continue on a merry path forever upward. The warning signs are all over the place, storm flags flying. Country is in serious economic trouble. Wall street does not look like Main Street.

Difficulty is predicting when the perfect storm will hit and its possible trigger points. The Powers that Be have been pretty successful in running what really amounts to a bit of a scam game masquerading as a market. The market no longer reflects the real condition of the country.

They run that lil clown out on schedule and he pronounces interests will remain at zero (like it matters any more).

Lots of details, can have lots of debate, lots of things to explore.

My own thinking the fall off the cliff could come as soon as this April, hoping they keep it up till end of March to let me get what I want done on the long side. You pick the scenario, many are possible. The Clowns in Washington probably hope to keep the sham up that the country is in good shape till election time. Personally I'm betting they can't, nothing is certain.

But if you have any real portfolio exposure on the long side, should have thought about what happens if things go to Heck in a Handbasket. Most Pennystocks can not be hedged directly. Those are the type that I have the most plays in right now.

Final point - Stop loss orders are very poor protection in a major blindside move down. They just become in essence market orders and there is not big enough exits, especially if you are holding any large amounts in a particular stock, doubly true if it is on the thin float side of trading. In my case I do not use any type of stops for that reason.