The Cheat Sheet

To start out this latest series of posts I'm going to go back to the beginning. First of all erase the word investment from your brain. There is no such thing as investing in the stock market. You are placing bets. You are placing bets on which direction you think things are going to go. You place these bets with the understanding that the market is rigged. It is rigged by the Federal Reserve and the large investment banks such as Goldman Sachs and it is rigged with the purpose of extracting as much money from the public for the profits of the big investment bankers as possible. The 401-k was invented for this very purpose. More on 401-k's at another time. If you understand this then you can try to tag along for the ride. To accomplish this you have to devise a method of determining which direction the powers that be are pushing or pulling the market. You do this with charts and reading between the lines which we will get into later but never forget your goal is to figure which direction the market is being manipulated at any given time. I don't bet on individual stocks as there are too many of them and I don't have the time or inclination to study them. Instead I have picked a few items that are easily manipulated by the men behind the curtain and track them with charts. The men behind the curtain move the market up most of the time but every so often they move the market down to take money away from the " Investors ". The idea is to make money on both the up and the down cycles. Below is a list of Electronic Trading Funds, ETF's for short, that I use to bet on the market. File this cheat sheet away for future reference.  

If you think a market is going to go down you will want to short that market.

To short the Dow use ProShares UltraShort Dow 30. Symbol = DXD

To short the Oil Market use ProShares UltraShort Oil & Gas. Symbol = DUG

To short the Gold Market use ProShares UltraShort Gold. Symbol = GLL

To short Government Bonds (Price Down/Yields Up) use ProShares UltraShort 20 Yr. Symbol = TBT

To short the Dollar Index use ProShares UltraShort UDN

　

If you think a market is going to go up you will want to go long that market.

To go long the Dow use ProShares Ultra Dow 30. Symbol = DDM

To go long the Oil Market use ProShares Ultra Oil & Gas. Symbol = DIG

To go long the Gold Market use ProShares Ultra Gold. Symbol = GLL

To go long Government Bonds (Price up/Yields down) use ProShares Ultra 20 Yr. Bond Symbol = UBT

To go long the Dollar Index use ProShares Ultra UUP