New Trade for January 18th, 2022

Stocks were markedly lower to start the day as investors prepared for a full docket of corporate earnings.  Thirty-five S&P companies are slated to report this holiday-shortened week, including Bank of America (BAC) and Netflix (NFLX).  The market’s reaction to results from the 26 S&P companies that have reported thus far has been mixed, despite mostly better than expected results.     

Equities have struggled to start 2022 amid surging inflation and looming changes to Fed policy.  The Dow, the S&P 500, and Nasdaq composite are all down for the year, with tech shares suffering the most.  The technology-heavy Nasdaq composite is down nearly 6% in 2022.

Given the sluggish backdrop for high-priced tech stocks, bearish investors may want to go near-term short on the Nasdaq- 100 Index.  Today we’ll highlight the method that many of the pros on Wall Street use for doing just that.  However, you don’t need to be a professional to employ this tactic.  

The ProShares Short QQQ (PSQ) fund offers inverse exposure to an index comprised of the 100 largest nonfinancial securities on the NASDAQ, making it a potentially attractive option for investors looking to bet against this sector of the U.S. economy.  

It’s important to note that PSQ is designed to deliver inverse results over a single trading session, with exposure resetting on a monthly basis.  Investors considering this ETF should understand how that nuance impacts the risk/return profile and realize the potential for “return erosion” in volatile markets.  PSQ should not be found in a long-term, buy-and-hold portfolio but may be a useful tool for more active investors looking to either hedge existing exposure or bet on a decline in the top nonfinancial NASDAQ securities.

ProShares Short QQQ (PSQ) Data Summary

  • Net Assets   576.04M
  • Expense Ratio  0.95%
  • Average Daily Volume $60.72M

Where to invest $1,000 right now...

Before you consider buying PSQ, you'll want to see this.

Investing legend, Keith Kohl just revealed his #1 stock for 2022...

And it's not PSQ.

Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.

Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.

Find that to be extraordinary?

Click here to watch his presentation, and decide for yourself...

But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.

Click here to find out the name and ticker of Keith's #1 pick...