Malkiel

Now is the Time for Inverse Sector ETFs

No, you need a day like today to be able to buy your short positions (which you would do if you are convinced that the overall market, or at least a chosen sector of it, is not trending up or is moving up and down). I like to keep it much simpler though, say by moving back and forth between a general market index ETF (like QLD ultralong for the Nasdaq) and its short equivalent (QID in this case). you buy the short as high as possible into the rally and sell it at the next convenient low, where you then simultaneously buy the long to ride back up. This is where volatility is your friend and flat or straightup trends are deadly. It's also where free trading in a tax-deferred account becomes a nice profit machine...