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).
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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.

Starting a Home Based Business? 5 Steps to Follow

Starting a home based business on the Internet has never been easier. With the current state of our economy it’s one of the best decisions that anyone can do to dramatically change his/her life. It has been statistically proven that for the first time in internet history, millions of people seeking their way out in this industry every day and the numbers are continuously growing.People come to the internet looking for answers to money problems, home loan problems, real estate problems, and looking for employment. All these searches performed on Google or any other search engine mean potential customers for individuals who already run their online business.If you have a solution to the searchers problems, there is tremendous potential in creating online wealth.The internet has millions of searchers each day and that information will equate to a six billion dollar e-commerce revenue projected for 2011. Internet revenue is expected to continually grow exponentially every year through 2015. Conservative analysis now estimates global Internet sales at 10 billion dollars in 2016.Since we are just slowly recovering from the recession that hit millions of people, many entrepreneurial minded people are beginning to consider starting home based business as a good idea. And they are right but only if they will do their research and due diligence.Many who will just jump blindly on any internet advertisement that says “Best Home Based Business Opportunity” will fail miserably. Unfortunately there is nothing like Get Rich Quick Scheme or a Push of a Button Scheme that would bring money flying out of your computer. You are better off buying a lottery and hoping for a good luck or miracle to happen..The online success will not happen overnight. It takes commitment and hard work to build a successful home based business. Only with everyday devotion the success will be built gradually. By starting home based business you have to give up two things at the beginning, time and money. The reality is that those who will invest their time and money at the beginning will see the results ten times down the road.Learning Internet Marketing is the best future investment that you can make right now.Here are 5 simple steps to follow on how to start home based business that can put you well on your way to building an online business this year.1. Starting Home Based Business – Think about a type of product or service that you would like to promote and sell. Make sure to do extensive research if that particular product is what others are searching for. Find a way to promote and sell it to them.2. Creating a Home Office – Create a place where you can close the door and fully concentrate without any interruptions. Make sure you talk to other family members not to interrupt once the door is closed. Allocate specific time blocks when you going to work on your business. Time management is the biggest downfall of many home based business entrepreneurs.3. Invest in training and education – Spend at least 60 minutes a day learning new internet marketing skills for the next 6 months and your business results will be ten times bigger than without the proper training. You can set up your own schedule and save tons of money if you study at home instead of spending 4 years in college.4. Leading Home Based Business Corporations – Many of the leading home based business companies promote multi level marketing programs where you tell one friend and that friend tells another friend and so on earning small commissions that build from one friend to another. Or you can tap into Network Marketing companies that offer higher end education products or lifestyle related conferences. These are great long term residual income producers that can create huge incomes for those savvy enough to market their product.5. Top Legitimate Home Based Business – Once you have found the top legitimate home based business for you, you’ll need to start marketing that business online. By becoming a member of a legitimate MLM or Network Marketing company, you will be provided with all the necessary tools and resources, you need to be successful online. There is usually a “Back Office” with these programs that will guide you through the sales procedures. Many of these companies will even supply you with your own website. Your job is to market their products online. You simply drive traffic to it through different social websites such as Facebook, Twitter, MySpace, Google Groups, and hundreds of other sites that you join to discuss your products and services. I will also recommend to market with Google AdWords, Video Marketing and Blogging.Starting home based business can be very easy if you have the right mindset, tools, resources, training, and system that you can follow and carbon copy.

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

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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.