Waiting For Nasdaq To Crash Lower – Next Few Month(s) with HQD.TO Bear/Short ETF

Nasdaq 1 year chart, Aug.12, 2011 just after crash HQD.TO
I started purchasing HQD.TO (Horizon Bear Nasdaq ETF) again. Some at 2450, and then some at 2500 points on the Nasdaq. I will look at loading up some more when the Nasdaq hits 2578 or higher, if it ever gets there.

If you think about the highs for the Nasdaq this year which was slightly above 2800, it is unlikely in this current economic environment that it will hit that high again.

I believe 2618 is the most highest it will go to after the current crash that the markets have been experiencing. There is no upward pressure to bring it up that high for now, earnings season is over, jobs aren’t improving and a possible recession is around the corner.

If anything the downside risk is huge and I think that the run up and this winding down of the markets will take the Nasdaq to 2100 (see chart). So, the bet is to ride the downward spiral of the Nasdaq from roughly 2578 down to possibly 2100 with the Horizon Nasdaq Bear ETF (traded on Toronto Stock Exchange -TSX) and profit from it.

Mind you this won’t play out right away or even a few weeks, it may take months.

by Das Brain

Please read my Disclaimer.

This entry was posted on Friday, August 12th, 2011 at 11:06 am and is filed under ETF, Economy, Option Trading, Stock Trading, Technical Analysis, Trading Psychology. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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