A red day and the market is not a time for you to spin around in your chair and do nothing, but rather a time for you to profit off the fluctuations. Since we as traders love consistent up trending patterns, why not flip a consistent down training pattern on its head by trading an inverse Etf? This is going to be a quick video, but all I ask of you in return for it is that you hit that beautiful and ravishing like button. And of course, don't forget to subscribe if you see value in the following video. So Xpx S is the leveraged inverse of the S&P 500.

Basically, if we have a massive sell-off in the market, this financial instrument will take the inverse and multiply it by three. I have a whole video on leveraged ETFs which I'll link to below if you're having trouble understanding what they are and the general idea behind them. But you could probably get by with just the explanation in this video. So SP X S provided beautiful price action for us.

so far. this morning we always talk about trading stocks and ETFs that have a pattern of providing clean run ups above the SMA line and this provided several beautiful and ravishing opportunities. Now again, the reason that we like this is because it not only gives us an ideal entry point as we see a confirmation, but it also helps us figure out and measure the price strength so that we could figure out the most ideal point for us to exit the position as well. We love to buy any conformation and sell out at validation as we know price action gapping closer to the SMA line is a sign of price weakness, while price action gapping farther is a sign of price strength.

sort of Technical analysis 101 if you will, and focusing on writing price strength and selling extended price weakness can allow us to take advantage of these opportunities. If you compare this clean run-up in the first two hours of market open to the run ups later, we see this difference in run ups. This very clear difference in run ups: ones clean ones not so clean, but this still offered us price strength and confirmation, but it was a little dirtier with weaker price action above the SMA line and some struggling back and forth. I Don't love playing positions that have some struggling back and forth back across the SMA line because it's just it's not a clean setup, you want to buy any conformation and just simply watch the price strength and we're taking day trading positions.

But anyways, this sell-off is largely the result of uncertainty around us-china Trade talks and this is another reason why. I Always explain to traders that understanding the fundamentals of stocks ETFs and the overall economy is so important to understanding and connecting the dots between why things move the way they do. if you are aware of a massive price change in event before the market opens, you can have your watchlist set up to trade stocks and ETFs that will have their overall Direction impacted by said event, You could use this to your advantage. For example, if it was Sunday night and I need that biotech regulations were just largely lifted for the entire biotech sector I could then go on market open on Monday and focus on lab U which is comprised of companies in that sector.

Since I know regulations being lifted and up, creating more profits for the company I'll know that the direction of that ETF is most likely going to be bullish. it's most likely going to go up. We can then likely assume that the overall direction will be green. Likewise, we knew about tariffs this past weekend and most assumed the overall direction would be read.

A lot of people think that everyone just sells in the pre market or they all sell the first five minutes of market open, but the reality is it just creates volatility for the rest of the day with an overall downward direction. Now you see X Y is another opportunity which multiplies in shorts the inverse VIX that same idea. same price action, but it is a different opportunity based on position sizes and percentage difference goals between confirmation and validation as compared to the other leveraged. ETF You Vxy returns a higher percentage difference between run ups, which could massively increase the amount of money you take from the position.

Also, there's almost always opportunities in individual stocks as well, just because the market is taking does not mean that you won't find opportunities in certain niches. This is specifically true for Earnings plays and Monkee Rating Winners GW pH Just reported great sales pretty insane boost in sales and had a huge run-up yesterday and after hours and then the market pretty much ate all of its gains. Today it was as if the gain had never happened. Now obviously good news causes over reactions, but this blatant disappearance of the entire amount of gains allows us to take advantage of overreaction lows and ride Priced ranked up and you could say that this was influenced by the direction of the overall market.

But the key is that we saw the strong sell-off under the A-line in what was a bit of a morning panic. But because the stock was in the hashtag winter category, as an earnings winner and analysts ranking lover, we could profit off the discount without being too cautious about the loans. Anyways, the point of this video is to explain that a red day is not the time for you to sit back in your chair and do nothing, but rather a time for you to take advantage of inverse ETFs and Earnings Winners and Analysts Monkey plays. But in any case, I Hope this short video was helpful for you if you are having trouble keeping up with the best plays.

My recommendation is to join the Zip Traders Circle Facebook group. We also have a Discord Chat now which is in the Facebook group. It's always pin to the top post. These are all free resources for you and I highly recommend that you take advantage of them anyways.

Have a great day folks and I'll see you in the next video.