Making Money When The Party Ends

On top of all that, the stock market experienced something on December 4 I haven’t seen in many, many months — an old-fashioned “pop and drop” trading session.

The “pop” was at the start of the trading session. All the major indexes, like the S&P 500, opened sharply higher at new all-time intraday records.

The “drop” started 15 minutes after the opening bell, with a high-volume decline that persisted throughout the day, straight through to the end of the session.

It’s starting to feel like March 2000 before the dot-coms turned south. The bear market is likely coming, but you can still make money in 2018.

(Source: TradingView.com)

The point is, it’s not a bad idea to take some proverbial money off the table in the least. Or if you have a contrarian streak, you can take the bearish side of the equation by purchasing a bear-leaning exchange-traded fund (ETF) like the ProShares Short S&P 500 ETF (NYSE: SH).

This trade hasn’t worked in a long time. But given the current extremes, it has a good chance to make money now, in my view.

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Moon Kil Woong 1 year ago Contributor's comment

I agree that it is best to be safe, however, fear not love of gambling is what's driving the market. The fear of what to get into if rates increase is what's forcing money out of housing and everything else that doesn't make a decent return and into cryptos and everything else that looks like it will make a decent return. This is especially true for foreign money that isn't that impressed with bonds given they are all sporting losses with the dollars' devaluation this year.