Short-Selling, Puts & Inverse ETFs 02 (Feb 12 - Dec 25)

[winston]

Lessons from a Legendary Short Seller

By Greg Blotnick

“I was always net long.”

“A good short portfolio allows you to be more long. . . . And that’s the crux of what we do.

It enables our investors — and ourselves — to be more long, whether it’s passive investments or stocks we select.”

There is a twofold takeaway here:
1. The greatest short sellers barely break even.
2. The primary goal of short selling should be to provide cash in a sell-off and let you “back up the truck” on your longs.

“I always used to say, if I shorted a stock and it didn’t go 20% against me, I probably made a mistake.”

Source: CFA Institute

https://blogs.cfainstitute.org/investor ... rt-seller/

[winston]

Top 3 Bear Market ETFs for 2017 (SH, SDS, SPXU)

By Kevin Johnston

Source: Investopedia

http://www.investopedia.com/investing/b ... z4Yx1qJ0Ki

[winston]

The 10 Most Heavily Shorted Stocks on All of Wall Street

By Trey Thoelcke and Jon C. Ogg

Source: 24 7 Wall Street

http://247wallst.com/investing/2017/03/ ... Newsletter

[winston]

Use This Little-Known Number to Find Explosive Stocks

By Ben Morris

Short interest is the percentage of a company’s tradeable shares that folks are holding short.

Short sellers must buy shares to close out of their positions. And if the stock they’re holding short is rising, their losses are growing.

At some point, they’re going to jump out of the burning building. Remember, a stock can only go down so far. But there’s no limit to how much it can go up… especially if nobody is eager to sell their shares.

The “days to cover” – can give you an idea of how big a short squeeze might be. Once you get past four or five days to cover, you have the potential for an explosive move.

Source: DailyWealth Trader

http://dailytradealert.com/2017/03/29/u ... ve-stocks/

[winston]

Aug 9, 2013

Japan Inverse ETFs

1, ProShares UltraShort MSCI Japan (EWV) - 2x Inverse MSCI Japan
2. Direxion Daily Japan Bear 3X Shares (JPNS)

https://www.zacks.com/stock/news/106238 ... verse-etfs

[winston]

List of Inverse ETFs (Short ETFs / Bear ETFs)

Source: Trader Mike

http://www.tradermike.net/inverse-short ... etf-funds/

[winston]

Inverse ETFs 2016

https://www.stocktrader.com/etfs/inverse/

[winston]

March 28, 2017

As Trump Euphoria Dies, Bet on This Bearish ETF

by John Persinos

AdvisorShares Ranger Equity Bear ETF (HDGE) .

This exchange-traded fund focuses on U.S. based, mid- and large-cap stocks with low earnings quality or overly aggressive accounting practices, regardless of their brand name or favor on Wall Street.

To find these dangerous stocks, HDGE managers scrutinize the income statements to uncover weaknesses that have been masked by hyperbole. This ETF focuses on the empirical numbers, not sentiment or wishful thinking. The approach is bottom-up and research driven, to pinpoint imminent operational deterioration.

After unearthing equities with particularly weak fundamentals, the fund shorts them. With net assets of $162.97 million, HDGE buys the stocks that typically fall the hardest in a bear market.

Top HDGE holdings include SNAP (SNAP) , the Internet mobile chat company that launched a frothy IPO this month, and Caterpillar (CAT) , which got hit this month with a federal tax fraud investigation.

Source: The Street

https://www.thestreet.com/story/1406238 ... yptr=yahoo

[winston]

3 ETF Options to Hedge Against the Next Market Crash

These three options will help you sleep better at night

By Lawrence Meyers

Source: Investor Place

http://investorplace.com/2017/04/3-etf- ... /view-all/

[winston]

Do these three things when stocks fall

by Jeff Clark

If you want to profit on the short side of trading stocks, you need to get three things right…

1. You need to target stocks that are overextended to the upside and have negative divergence on the technical indicators.

2. You need to buy cheap put options, and you need to be willing to lose 100% of the premium you pay for the options. It should be less of a loss than short selling the stock.

3. You need to be willing to take profits quickly. As stocks fall, the implied volatility of the option premium increases. You don’t need to wait for the stock to achieve your downside target. The option premium will often inflate to reflect the downside potential. Be willing to sell into that.

Source: Delta Report

http://thecrux.com/do-these-three-thing ... ocks-fall/