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S&P 500 Short Proshares

Trading Strategies

Make Sure You're Using This Free, Simple Profit Protector

While the S&P 500 has moved back above 3,000 for the first time since late February and many investors are enjoying the long-side profits, it's important to remember that you shouldn't rush in unprotected.

Especially investors who now have even bigger portfolios to defend.

You see, the market could turn vicious in a heartbeat.

On the one hand there are the economics risks of the coronavirus and on the other, the "money migration" that was sparked by that same technical breakout above 3,000 is also a signal that we could walk into an overextended, "overbought" situation in the market.

That means hedging is more important than ever.

But there's another hedging move that's even easier - and it won't cost you a dime...

stocks

Markets Live Recap: Why the Stock Market Was Volatile Today

Tensions between the United States and China have risen in recent weeks after President Trump criticized the Chinese government's response to the coronavirus outbreak.

Investors were worried that Trump may pull out of the phase one trade agreement with China reached earlier this year.

That's why they sold off stocks into the close yesterday.

And throughout most of the day today.

But fortunately, the President didn't even bring up the trade agreement during his press conference today.

Instead, Trump announced he would take action to eliminate special treatment towards Hong Kong.

Money Morning's Chief Investment Strategist Shah Gilani was watching this press conference closely and dissecting all the news that came to light today.

Here's how he thinks investors should be positioning themselves heading into the weekend...

stocks

Markets Live Recap: Another $3 Trillion in Stimulus Money (Barely) Lifts Stocks

Markets faltered in early trading this morning as the Trump administration moved to block shipments of semiconductors to Huawei Technologies from global chipmakers.

Retails sales data also showed a 16.4% month-over-month drop in April – an all-time record.

The news sent the Dow down 1% to start the day, before it rallied and closed 0.25% higher as news surfaced that the White House would likely support a new round of stimulus checks.

The full bill would include an additional $3 trillion total worth of stimulus.

Here's what our experts – D.R. Barton, Jr., and Shah Gilani – thought about the moves in financial markets today and what they're looking for next week.

Read more...

Trading Strategies

This Portfolio "Fire Insurance" Could Put 24.8% in Your Pocket

Let me paint you a picture: Imagine your house, safe and sound. You want to insure it, so you buy a policy and pay regular premiums on it. Of course, if the unthinkable happens, you're covered.

Now imagine you've got no policy, and, one day, your house is starts to burn… You desperately call Allstate or Metlife to find that a policy is getting way more expensive with each passing second (though, I'm pretty sure no insurance company would write a policy under those circumstances).

The thing is, millions of people who wouldn't go a day without homeowners' insurance balk at "insuring" their portfolios with proper, inexpensive, and proportional hedging. Then when the "fire" starts, they're either paying through the nose… or going without.

In fact, this very subject came up just the other day on my Markets Live stream, and by the time we were through with the session, we were all a lot smarter – and better protected.

And the timing is good: The next leg down may have already just started… Full Story

And the timing is good: The next leg down may have already just started...

trading strategies

Give Me Three Minutes, and I'll Share a Secret for Taming These Mean Markets

The markets are scary, right? Gutwrenching, even. They take rallies that look strong at midday and wipe them out by market close.

It's the one thing that investors at all levels are feeling and can agree upon.

But it doesn't have to be.

There's one simple strategy you can add to your investing game plan that will "smooth out" the worst of the coronavirus-pandemic volatility and ease the impact of the big sell-offs that could still come our way.

It's your single most powerful tool to protect against the one thing we have right now: uncertainty.

It's called "hedging," and the way I'm proposing to do this is so simple that anyone can do it – even my 75-year-old mom.

And here today, I'm going to show you how… Full Story

And here today, I'm going to show you how...

Trading Strategies

How to Navigate the Four Corners of This Coronavirus-Driven Market

The last time I spoke with you folks, I told you about three different things that you could do – and that I'm definitely doing myself – in the midst of a world crisis like the coronavirus:

1. Risk less – around the office we have a saying, "Trade small, trade often," and there's a reason for that. Trade small basically means small risk, but also, trading often means we're able to diversify ourselves into many different things, both bullish and bearish.

2. Look for things that go up in a down market.

3. Exploit volatility when it comes to options – boy, have we got volatility here now.

Now, I wanted to take a few minutes with you to show you how I assess these markets.

I divide the overall market into four grids because wherever the overall market is going, chances are, your portfolio's being affected in one way or another. Specifically, I watch four key areas – the "four corners of the market" – to tell me what's going on, and the right action to take… Full Story

I divide the overall market into four grids because wherever the overall market is going, chances are, your portfolio's being affected in one way or another. Specifically, I watch four key areas - the "four corners of the market" - to tell me what's going on, and the right action to take... Full Story