BxCapricorn

How to Handle a Snap-Back Rally (If We Get One)

What I meant by saying to react to a rally by buying an ultra-inverse fund is that you expect the rally is a relief rally and has no legs. Something like SDS goes down in price and you start a position, adding to it in increasing increments as the rally continues. If the rally results in another major down-leg, your position in SDS helps lessen the blow to your portfolio of other holdings.