SQQQ - PSQ: An Inverse Play Against The Nasdaq That 'Might' Work Now

2024-06-17 12:00:23 ET

Summary

• ProShares Short QQQ ETF is an inverse fund that tracks the daily performance of the Nasdaq 100 Index.
• The PSQ ETF provides a tactical trading tool for investors looking to hedge against the tech-heavy Nasdaq 100 Index.
• While PSQ offers a way to bet against the market, it is a risky short-term trading tool with potential value erosion and tracking errors.

If you've tracked me for any period of time, then you know, no matter how bearish I get (at times right, at times wrong), that I'm very against outright shorting. The risk is unlimited when you short, and while some are successful short sellers, it's extremely difficult over long periods of time because the market does have an upward bias. Having said that, there are people who want to bet against the market, and in particular the Nasdaq 100 as represented by Invesco QQQ Trust ETF ( QQQ ) given the near vertical move that's taken place since last year. If you're one of those people, the ProShares Short QQQ ETF ( PSQ ) is worth considering....

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