SH
💰 A successful short position using the SH ETF (inverse S&P 500) was closed, capturing gains during market decline.
📉 The decision to sell SH was based on the S&P 500 showing signs of forming a bottom and failing to fall further, indicating the downward move might be exhausted.
🎯 Technical analysis, including Fibonacci extensions and chart patterns (mastil-bandera), indicated that the profit target for SH had been reached, prompting the exit.
@ClaveBursatilTV:
“One of the sales we made this week was the SH. Remember we had invested and suggested investing to hedge with SH, which is the inverse of the S&P 500? Well, this week it precisely fell. We had decided to sell the SH, take profits, and stay liquid. When? Not with the news, before the news. Why? Because it was already forming a floor. Hey, it’s not falling anymore. Why would I stay bought in an asset that is no longer falling? So, we went out to take profits effectively. Besides, it had reached the target zone, the 1.618 Fibonacci extension, or also a figure more like a flag pattern, which it had executed and had already reached the zone. So, due to technical patterns, Fibonacci extension, and because the S&P was forming a floor, we went out to sell the short of the S&P. Well, we made a profit of almost 10%, if I’m not mistaken… look, 13%, depending on the price you entered and the price you exited because, well, everyone has their timing. But in general, we had a good gain in a market that was destroyed, so it doesn’t matter if it was 13, 10, 8; just not having lost is a lot. So, a great element, a great tool to hedge yourself in the future from a market you see might go down. So this was one of the sales.”
Watch the exact part of the video where @ClaveBursatilTV talks about ProShares Short S&P500 here:
Watch the video on YouTube
Read more articles analyzing ProShares Short S&P500 (SH) at the following link. SH stock.
