The Long and Short of It
Selling short isn’t for everybody and it’s not even permitted in a retirement account. But there is a way to profit from the current volatility, including the downturns, even in retirement accounts. A new breed of index funds lets you buy shares just as you would in any fund or stock and the fund does the trading for you. Direxion Funds are the newest of all with their triple index funds. Profunds have been around longer, which means their charts make some sense. Just a few of their funds are listed here.
Whatever you do, be careful. These are some of the riskiest trading possibilities available. Some experts recommend only using them as a hedge against losses in other investments. If you’re an active trader, set your stops, even if you don’t plan to leave your computer. These funds can climb faster than you can believe, but they can fall just as fast or even faster.
Direxion Funds
Large Cap Bull 3X Shares – Russell 1000 BGU
Small Cap Bull 3X Shares – Russell 2000 TNA
Energy Bull 3X Shares – Russell 1000 Energy ERX
Financial Bull 3X Shares – Russell 1000 Financial Services FAS
Large Cap Bear 3X Shares – Russell 1000 BGZ
Small Cap Bear 3X Shares – Russell 2000 TZA
Energy Bear 3X Shares – Russell 1000 Energy ERY
Financial Bear 3X Shares – Russell 1000 Financial Services FAZ
Profunds
Short QQQ Inverse of the NASDAQ-100(R) Index PSQ
Short Dow30 Inverse of the D-J Industrial Average(SM) DOG
Short S&P500 Inverse of the S&P 500(R) Index SH
Short MidCap400 Inverse of the S&P MidCap 400 Index MYY
Short SmallCap600 Inverse of the S&P SmallCap 600 Index SBB
Short Russell2000 Inverse of the Russell 2000(R) Index RWM
UltraShort QQQ Double the inverse of the NASDAQ-100(R) Index QID
UltraShort Dow30 Double the inverse of the D-J Industrial Average(SM) DXD
UltraShort S&P500 Double the inverse of the S&P 500(R) Index SDS
UltraShort MidCap400 Double the inverse of the S&P MidCap 400 Index MZZ
UltraShort SmallCap600 Double the inverse of the S&P SmallCap 600 Index SDD
UltraShort Russell2000 Double the inverse of the Russell 2000(R) Index TWM