Catching Plays To The Short Side – Guidance From An AI Trading Tool?

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Perma-bulls will lament the market’s current conditions, but unbiased traders have arguably learned to see opportunity everywhere — even in weaker markets. 

This feat is accomplished not by any sort of remarkable skill but by an ability to view — and act — on market direction, regardless of whether it’s moving up or down. Because of market operators like Interactive Brokers Inc. IBKR and Cboe Global Markets Inc. CBOE, it has seemingly never been easier — or cheaper — for a trader to buy a put contract or to sell a share short, but many remain averse to these actions, perhaps because of a misconceived notion that bears always fail.

Traders can make money betting on stocks going down, and many traders do so every day. Being able to do so professionally and consistently, however, is a whole different ball game. 

For traders who see the opportunity that weak markets provide but are unable to act on them, market data players like VantagePoint may provide some relief. As a specialist in market forecasting, Vantagepoint AI has actual case studies of how their patented artificial intelligence has changed the lives of over 35,000 independent traders.

Below, it shows how traders could’ve used its artificial intelligence (AI) software to possibly predict short-based plays using three popular inverse exchange-traded funds (ETFs). 

The Opportunity In Inverse ETFs

The ProShares Short Dow30 ETF DOG records three times the inverse of the daily performance of the Dow Jones Industrial Average.

Since Jan. 3, the ProShares Short Dow30 ETF has increased roughly 5.2 points, rising from 31.44 to a high of 36.66 in just over five months. The current turnaround represents roughly a 16.6% change in the ETF’s price. At the onset of the COVID-19 pandemic, the ETF rose 50% in 32 days, possibly showcasing a valuable ability to be used as a proxy for larger-market shorts. 

Want to learn more about the forecast for (DOG)? Click here.

The Proshares Short QQQ PSQ records three times the inverse of the daily performance of the Nasdaq 100. 

Given the technology industry’s notorious sensitivity to market dynamics, it's not surprising that the Proshares Short QQQ ETF moved more than twice as much as the ProShares Short Dow30 ETF in 2022, climbing to a high of 36.39% in just over five months. The ProShares Short QQQ ETF might’ve served up valuable shorting opportunities in the COVID-19 pandemic and in October 2018, when it ascended 29% in 92 days.

Curious to see where (PSQ) is headed next? Click here.

The Proshares Ultrashort Lehman 20-Year Treasury TBT records two times the inverse of the daily performance of the I.C.E. Treasury 20+ Year Bond Index. 

TBT has had an incredible 2022 amid poor macroeconomic conditions, rising 60% since Jan. 3. Like both the examples before it, the TBT has a constantly down-trending chart with few moments of upside, where shorts and bears are most active. Between July 2016 and December 2016, TBT increased by nearly 40% in 173 days.

Will TBT trend bullish or bearish? Learn more here.

Catching The Next Short With Vantage Point?

VantagePoint, an AI market forecasting software, states that it specializes in predicting major market moves 1 to 3 days in advance. With a third party-tested up to 87.4% proven accuracy, VantagePoint says it puts the power in your hands by giving you all the tools you need to capitalize on market opportunities — short side included! 

Click here to learn more. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Photo by Mark Basarab on Unsplash