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I’ve been asked by several investors where they should allocate their money during a heavy sell-off. During a correction, volatility remains high. One must take caution as markets tend to reverse in a blink of an eye. If you’re up, lock in your profits because playing the market down is just as fun and cash rewarding but tends to be a long slippery slope. During the “The Great Recession of 2007-2009, I personally traded these funds. At the end of April 2010, I dusted off my”Reverse Play Book“. It’s basically notes that I took during the crisis and how to cash in during down times. One shouldn’t get discouraged when the markets go south. As a matter of fact you get a big bang for your buck as markets go down faster than up. Look what happened the last 3 weeks. It took 6 months to reach 11,200 from 10k and it took 3 weeks to erase these precious gains. So onto my “Play Book”. As an investor you should do your own due diligence. Some funds are 3x’s the Inverse of the markets-which tends to be too volatile. Again these are substiutes to PUT Options. Please note they’re all Short Based ETF’s

QQQQ- The Fund seeks to provide investment results that generally correspond to the price and yield performance of the component securities of the Nasdaq-100 Index.- Put Options

SPY- The Trust seeks invest results that, before expenses, generally correspond to the price and yield performance of the component common stocks of the S&P 500 Index.- Put Options

SRS-  UltraShort Real Estate ETF

SKF-  UltraShort Financials ETF

DUG- UltraShort Oil & Gas ETF

SQQQ- UltraPro Short QQQ ETF

DTO- DB Crude Oil Double Short ETN

SIJ- UltraShort Industrials ETF

SSG- UltraShort Semiconductors ETF

SDK- UltraShort Russell MidCap Growth ETF

MYY- Short MidCap 400 ETF

TWM- UltraShort Russell 2000 ETF

SZK- UltraShort Consumer Goods ETF

REW- UltraShort Technology ETF

EEV- UltraShort MSCI Emerging Markets ETF

EWV- UltraShort MSCI Japan ETF

EUM- Short MSCI Emerging Markets ETF

SCC- UltraShort Consumer Services ETF

SJH- UltraShort Russell 2000 Value ETF

FXP- UltraShort FTSE/Xinhua China 25 ETF

FAZ- Financial Bear 3X Shares ETF

ERY- Energy Bear 3X Shares ETF

Tags: bears, correction, correction 900 point drop, dto, dug, EEV, ERY, EUM, EWV, FAZ, how to play down markets, Inverse ETF's, myy, Power Shares, QID, qqqq, Reverse funds, REW, SCC, sdk, SHORT bias funds, sij, SJH, skf, spy, sqqq, srs, ssg, SZK, TWM

This entry was posted on Friday, May 21st, 2010 at 3:41 am and is filed under Contributors, Large Cap Stocks, Technical Stocks. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.