The model has switched to a sell signal. The divergence observed between the Russell 2000 and other indices can be a red flag. Precious metals have also been hit hard. Further, Bernanke's stance of no QE3 for the time being is weighing on the general market. Meanwhile, Euro-QE is alive but is it enough to keep the uptrend intact? If Bernanke's words are akin to taking away the punchbowl for the time being, markets could have a tough time of things in the interim. In the long run, the Federal Reserve prefers to keep its powder dry so should another crisis occur, they have QE3 at the ready.
Suggested inverse ETFs:
1-times inverse
RWM - Russell 2000 small cap 1x bear. It should approximate 1x the inverse of the Russell 2000.
PSQ - NASDAQ-100 1x bear. It tracks 1x the inverse of the NASDAQ-100.
2-times inverse
TWM - Russell 2000 small cap 2x bear.
QID - NASDAQ-100 2x bear.
3-times inverse
TZA - Russell 2000 small cap 3x bear.
SQQQ - NASDAQ-100 3x bear.
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