SPDN: An Inexpensive Way To Profit When The S&P 500 Falls

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

Tips to Become a Widely Loved Fashion Blogger

Creating your own fashion blog can be the easiest and at the same time, the toughest of all writing assignments. The task can be both intimidating at times and exciting too. There is probably no other subject on earth that makes you as jittery as the subject of fashion when you start creating a blog dedicated solely to the aspects of looking great.Do Not Focus Solely on Earning Money: Like most of the other bloggers, fashion bloggers are also allowed to make money through proper marketing of their blogs. But, earning money should not be the sole purpose of the blog. A number of fashion blogs these days are interested in generating revenue through advertisements of different fashion brands. This makes it way too difficult to build a heart to heart connection with the readers.Invite The Reader to Your Fashion World: People do not visit a fashion blog just to check out what clothes the bloggers are wearing. They want to have a complete fashionable experience by receiving knowledge about what they should wear and why. Moreover, the visitors would like to get into the complete runway fashion experience or would love to imagine themselves to be in the part of the world that a particular trend of fashion belongs to. This is the best way to gift the ordinary blog readers with a nice “almost” fashion show like experience without intimidating their taste for fashion. In fact, that is what most of them turn to a fashion blog for.Engage The Readers with Excellent Write-ups: It is true that the nice and catchy photographs are prerequisite to bringing more traffic to your fashion blog. That does not mean you can forget keeping an eye on the quality of posts on your blog. Remarks interwoven with witty and intelligent fun keeps the readers hooked and makes most of them coming back, again and again. No matter how beautiful the images are and how much your knowledge and sense of fashion helps the visitors, you cannot expect them to wait for a few minutes before leaving, until the information in black and white does not seem to be enlightening and appealing enough.Reach Out to Readers by Imparting Confidence: Fashion blogs are a tad different from the usual fashion magazines and the lifestyle channels on television. Writing for fashion blogs is beyond mere advising about what to wear and what not to. But, the readers love to see in the fashion blogs how ordinary people actually dress. Unlike, popular fashion magazines and TV channels, such blogs tell its target readers how to wear whatever they want to, confidently. Some widely popular fashion magazines cannot impart the same confidence that the wearer needs to carry along with the dress.Do Not Suggest Buying Expensive Products: The dream of buying expensive clothes, accessories, bags and shoes from big fashion labels often pursue people to end up adding them to their stock. Still, a large number of people cannot afford such brands. Does that mean, those people cannot really reach out for what is called fashion in true sense? Fashion bloggers can bridge the gap by relying equally on low-budget products as they do on expensive brands.Image is The Heart of Fashion Blogs: High quality photographs are a must for the success of a fashion blog. Fashion is one subject, blogs on which requires to cater to the ocular sensory nerves a lot. So, it becomes very important for the blogger to look for the right kind of pictures to validate the subjects of blog-posts. The readers will definitely like to have a look at what they are being suggested to wear. It is very important to put up very clear and professionally taken photographs that will also help them visualizing themselves in such clothes. It is very important for the blogs to become fashion inspirations for the readers. Otherwise, they will not come back to the blog again.Creating a fashion blog involves loads of diligent efforts to make people believe that they can look fashionable even in the most low-priced and ordinary clothes already present in their closets. So, make them understand that there is no need to burn a huge hole in their pocket to look fashionable. It is their confidence and attitude that can make all the difference.

US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%

US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent

Twitter Facebook Linkedin
US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.

Source: Comex

Nasdaq Top Gainers and Losers

Source: Nasdaq

Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.