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Use ETFs to profit in down markets as well as up markets

Introduction Many money management professionals take advantage of various hedging strategies to avoid being whipsawed by the markets and to avoid losing money in down markets. They may use combinations of swaps, options, futures and derivatives to offset risk and to generate returns when traditional investments are losing value. Some of the investment tools used by these professionals are now available to the public. There are several companies that have developed families of mutual funds and ETFs that bundle all these exotic vehicles into easy to understand funds that track common indexes. I will focus on two companies, Rydex and ProShares, as I describe a strategy that will allow you to invest and profit like the professionals. Both companies have products that track, as a minimum, the Dow, the NASDAQ 100 and the S&P 500. What is interesting and pertinent to our discussion here is that they also have funds that track the INVERSE of the associated index. For example, if one fund...

FCEL - Buy Signal Fails to Materialize, Weekly Roundup

With the market in uncertain territory lately, the buy signal for FCEL did not come through. The stock has been mostly down for the past week and TradeRadar clearly indicates this is not the time to buy. As for the other two picks I have posted about, Generex (GNBT) and Eight-by-Eight (EGHT) have both slowed their advance. Generex continues to put out press releases about successes it is having with its new drug delivery systems and Eight-by-Eight recently announced that Office Max will be carrying it's products. The news is decent but the charts are weakening. An analyst announcing that he still has doubts about EGHT effectively killed a bounce-back in the making in that stock this week but I am still rating it a hold if you had purchased at the time TradeRadar gave the buy signal. I am still holding GNBT, as well.