"The four most beautiful words in our common language: I told you so" -Gore Vidal
Good day members,
Gore Vidal may have put it best with his above quote, but no, we will not climb to a bully pulpit proclaiming "I told you so", we are much more humble here. Our warnings of this crash were done simply to have all members prepared for it, and to, of course, take huge advantage of it. In fact, some of our ETF's have gone absolutely bonkers as this correction occurs. So a hearty congratulatory handshake for all of you!
We're going to keep it short and sweet in this issue by simply looking at the three ETF's that we wanted everyone to consider back before the correction/potential bear.
So without further ado, here's the three ETF's that we're absolutely crushing, keep in mind, these three could be getting close to a sell point (unless the market doesn't correct and just continues dumping into bear territory). If it is indeed the long-overdue healthy correction we needed, we'll issue new suggestions on different ETF's to make money when the market turns back up.
On the morning of July 1st, we delivered an issue via email to you called "Beware The Dead Cat Bounce." We have this issue, and all others archived in the "past issues" section of the website, please feel free to review (caesarsfinancial.com). In that issue we suggested members have a look at the following ETF's.
Direxion Daily S&P500 Bear 3X ETF (NYSEARCA:SPXS) *The investment seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the performance of the S&P 500® Index.
The fund, under normal circumstances, creates short positions by investing at least 80% of its assets in: futures contracts; options on securities, indices and futures contracts; equity caps, floors and collars; swap agreements; forward contracts; short positions; reverse repurchase agreements; exchange-traded funds ("ETFs"); and other financial instruments that, in combination, provide inverse leveraged and unleveraged exposure to the S&P 500® Index ("index"). The fund is non-diversified.
ProShares Trust - ProShares UltraPro Short S&P500 (SPXU) *The investment seeks daily investment results that correspond to three times the inverse (-3x) of the daily performance of the S&P 500®. The fund invests in derivatives that ProShare Advisors believes, in combination, should have similar daily return characteristics as three times the inverse (-3x) of the daily return of the index.
The index is a measure of large-cap U.S. stock market performance. It is a float-adjusted, market capitalization-weighted index of 500 U.S. operating companies and real estate investment trusts selected through a mechanical process. The fund is non-diversified.
ProShares UltraShort S&P500 (NYSEARCA:SDS) *The investment seeks daily investment results that correspond to two times the inverse (-2x) of the daily performance of the S&P 500. The fund invests in derivatives that ProShare Advisors believes, in combination, should have similar daily return characteristics as two times the inverse (-2x) of the daily return of the index.
In the time since that issue was delivered these three ETF's have gone absolutely bananas. Let's look.
SPXS opened July 1st at $18.40. It hit a high of $25.25 on Monday August 24th. That ETF has run up as high as 37%
SPXU opened July 1st at $34.23. It hit a high of $48.18 on Monday August 24th. SPXU ran as high as 41%
SDS opened at $20.69 on July 1st. It ran all the way to $25.60 on Monday the 24th, zipping to a high of 24%.
Now all three of these ETF's could run higher if the market turns into bear territory. In fact, they could double from this point.
However, it may be wise to lock any gains here and hit the sidelines to see if the market will go lower into bear territory or turn higher, signaling this market crash was a correction. If the crash turns out to be a simple correction, we'll look at three new ETF's to take advantage of a rising market. For right now, it may be best to either sit tight on these, or liquidate them if you feel the market has bottomed.
Until next time…
Here's to smart investing!