Inverse Yield means recession is imminent
$ProShares UltraPro Short QQQ ETF(SQQQ.US$ $ProShares UltraShort QQQ(QID.US$ $ProShares UltraPro QQQ ETF(TQQQ.US$ $Invesco QQQ Trust(QQQ.US$
This is going to happen soon, can't escape, and inevitabliy all of us globally will be affected, slow/negative growth, plus inflationary pressure meaning even housing loans in SG may go above 2-3%.
Although i have SQQQ, i will be paring it down (due to decay reasons) and either switch to QID or buying into defensive stocks like $Procter & Gamble(PG.US$ & commodity stocks.
7 year yield already inveser 10 year, and 2 & 3 years are creeping closer.
Good read if you want to know why inverse rate is a sure symptom of reccession.
https://www.forbes.com/sites/simonmoore/2022/02/11/the-yield-curve-could-invert-in-2022-heres-why-that-spooks-markets/?sh=546d556f112c
This is going to happen soon, can't escape, and inevitabliy all of us globally will be affected, slow/negative growth, plus inflationary pressure meaning even housing loans in SG may go above 2-3%.
Although i have SQQQ, i will be paring it down (due to decay reasons) and either switch to QID or buying into defensive stocks like $Procter & Gamble(PG.US$ & commodity stocks.
7 year yield already inveser 10 year, and 2 & 3 years are creeping closer.
Good read if you want to know why inverse rate is a sure symptom of reccession.
https://www.forbes.com/sites/simonmoore/2022/02/11/the-yield-curve-could-invert-in-2022-heres-why-that-spooks-markets/?sh=546d556f112c
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Dramericanjesus : I don't get why people feel that after one of the biggest policy errors in Fed history that we will still be able to avoid recession. It's not logical.
Markio1315 OP Dramericanjesus : Irrational optimism, fuel by ppl like Cathie Woods
sayno : May I ask, what strategy are you using to avoid huge loss on your SQQQ position?
I am still working out on the best way, not to make profit but to exit with less damage. thanks
sayno : So far I have averaged down from 46 to 43.9. Dono if I am doing the right thing.. any comments? thanks
Markio1315 OP : I buy in when it 35s and sold when it goes up by 1 dollar, then wait for chance to buy in again, reviewing the charts. Not easy cause many are still buying at dips, so sometimes just sit on sidelines. I don't play options cause of decaying issues, of course the risk reward factor is high. I only had 1 put option on $Apple (AAPL.US)$ which I am prepared to lose the premium. Play within your risk appetite, else it would affect your mental health.
iamiam sayno : you are not in a terrible position IF the market continues to fall, but IF the market is bullish do NOT hold them.
For a poor example = if there are some -2% days on QQQ then SQQQ grows exponentially as the market falls (2% drop on QQQ is ~6% added to SQQQ, assume QQQ drops 2% for 2 days in a row and SQQQ is 38 to start, it would be 40.28 at the end of the first -2% drop and then another -2% drop makes SQQQ 42.7 at the end of the second day) - do note that it never calculates out perfectly because of all the variables, its impossible to predict exactly but that is a general idea. hope I didnt confuse you too much.
Markio1315 OP : Sometimes you can aim for stocks that are most affected by interest rate especially high growth stocks that are above daily 70RSI to short. Those under ARK funds are good candidates.
Markio1315 OP iamiam : yes thanks you are right, that's why have to do DD and may even cut off $ProShares UltraPro Short QQQ ETF (SQQQ.US)$ at loss if trend reversal is confirmed. Maybe better to sit and observed
Fat Veg 7890 iamiam : We are still bearish right? The MM still tormenting the bears and at the same time still luring the bulls. Wonder when all this will start to fall and show us the BEAR way.
sayno iamiam : oh dear.. I wasn't aware of that. So it's not advisable to hold SQQQ too long. What is the max time frame? @iamiam
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