When $SDS looks good, it’s a bad day in the market – March 9, 2023


Download Video || Download Fast Video

This is Scott with your Chart of the Day. Anytime an inverse ETF looks good it’s not a good day in the market, and this is one of them. This is the ProShares UltraShort S&P500 ( NYSEARCA: SDS ). Now, this one does move fast, especially in times of volatility, and it is bullish. That means the market ( NYSEARCA: SPY ) is generally looking bearish.

But that doesn’t mean you still can’t make money when the market is going down. As active investors that is kind of what we like to do. And so what I want to see from SDS ( NYSEARCA: SDS ) is a move back above this 200-day moving average.

And so I think it definitely makes sense to have an alert, on this chart, right around that 44.40 level. And we will want to see this push through, break higher, and get back above that 200-day moving average for a potential test of that $47.00 range.

Now, if I zoom out here you can see that we have a low from back here in August. Then we had the October low in the market, which would have been the high of this chart. And when it pulled back you can see it actually made a technical higher low, just by a little bit here.

This is not great for the market, but like I said, as active investors this is definitely a vehicle that you can use to make money even when the market is going down. So definitely check this chart out tomorrow. We will want to see if this can get above and hold above that 200-day moving average.

Free Chart

Leave a Comment