Saturday, 31 August 2013

Is it time to short S&P 500??

One thing that investor does not like is uncertainty from events and in the recent weeks and months, this has reflected in the market. If you think that this is a good time to short the market, for e,g S&P500, one can invest in a inverse exchange-traded fund(ETFs) as a hedge against a correction.

To short S&P500, one can invest in Proshares short S&P500(SH). As this is an Inverse ETF, you buy instead of short sell. You can refer here for more information about this ETF.

The chart has crossed the 50MA, but it is still below the 200MA, so is it time to buy?

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