Black Thursday Trading Advice

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I’m running on fumes due to a week of flying cross-country for business, but I thought I’d leave this trade for you readers.

Short the XLY this morning.  This is the Select Consumer Discretionary Spider ETF which aims to track consumer discretionary stocks.  Discretionary spending should fall as the state of the economy goes from bad to worse and the corresponding public confidence declines further.

You can follow this recommended strategy by either:

1. Selling the XLY ETF short
2. Buy Put options against the XLY or
3. Buy the Proshares Ultrashort Consumer Services (SCC) ETF which aims to track 2x the inverse of the XLY.

You should see a big downward movement in the XLY and corresponding up trend in the SCC this morning.

Happy trading and good luck