SPDN: An Inexpensive Way To Profit When The S&P 500 Falls

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

Advice On Sports Nutrition Supplements

Have you wondered how your favorite athletes do their workout? Or what kind of exercises they perform, what kind of food they eat or how do they manage to relax under pressure situations? Probably you don’t care about all this because what matters for you is their performance in the sport. But it doesn’t mean that they don’t take care of themselves like we do.In fact, athletes need to monitor their lifestyle very closely and keep their health conditions at par with their competitors; not just by eating right food items but also by consuming supplements.Supplements are an integral part of athletes’ diet. It is required to have an enhancement of their endurance, and also to increase or, if not increase, at least maintain the appropriate muscle mass to be able to improve size and strength.One of the most important parts of any sports nutrition is protein supplements. Without these supplements, athletes would not be the way they are at present. However, contrary to what most people think, diets jam-packed with protein do not necessarily build up muscle strength.Building up muscle strength would be the job of regular physical activity. So if you want those big muscles you have to do exercises, not necessarily at gyms but could be also at your residences, daily. The key factor here is regularity. What you can achieve with steady and regular exercises may not be possible with a high profile but an irregular one.Sports nutrition supplements need high levels of protein, which you can get from protein-rich foods. Enumerating all those food item will be a total waste of space in this article.But to make you aware of the basics, here are a few of the foods that are rich in protein. There is fish, poultry and dairy products, and these are the foods you usually get your protein from because some sources of protein are high in fat and also in calories. So basically, you must take note of which sources are high in fat and which are not.Even though nutrition supplements are useful, there are many reasons because of which sports nutrition experts discourage use of such supplements. One of the reasons is that these supplements can put a strain on your liver and kidneys.Other reasons include high amounts of nitrogen in the nutrition supplement, which will only be excreted from your body as urea. But it is not as easy nor is as safe as it sounds because this said excretion often causes fluid imbalance, which leads to dehydration.Another problem with sports nutrition supplements that have high amounts of protein from animal sources is that there are higher risks of heart diseases due to the high fat intake associated with such nutrition.One more disadvantage of sports nutrition supplements is that there is a huge tendency that you will ingest amino acids that are capable of interfering with other amino acids, which results in a metabolic imbalance.Beware of sports nutrition supplements that have high amounts of amino aids because it can cause gout; diarrhea and stomach cramping that can rank from mild to severe pain.Even though sports nutrition supplements are being discouraged by sports nutrition experts, Bricker Labs, a sports nutrition supplement manufacturer, still does a lot of research, developments and marketing in this area.Bricker Labs has over thirty years to blame for their success in their provision of sports nutrition supplements. They do not apply to sports nutrition only too, but also to weight loss, diet, health and other nutritional aspects.It’s because of their experience in the field of sports nutrition and also because of their choice of perfectly safer ingredients in developing the nutrition that you would not like to consider any other manufacturer for your sports nutrition supplements. So what are the ingredients they use and how are they safer than those that other manufacturers use?They make us of the L-Carnitine, which is mainly used for weight loss, energy and also for having a healthy heart function; Colostrums, which gives your body a healthy immune system function and also gives your body an improved stamina and also for an easier recovery in almost all cases; Vandayl Sulfate, which is capable of growing your muscles and also has the ability to define your muscles; Protein, everyone knows what protein is for and that is for sports nutrition, and also for health and muscle growth.Another component is called Creatine, which is used for sports nutrition and muscle growth but it also involves bodybuilding at this time; HCA or Garcinia Cambogia, are for losing weight and suppressing your appetite; and last but certainly not the least, Vitamin B-12, is for overall health and nutrition.All these ingredients mixed proportionately make the right sports nutrition. And an adequate dose of such nutrition gives the athlete required energy and muscle strength. Now you know what keeps an athlete going!

Introduction to Online Advertising

Our next lesson covers the main items for online advertising. Advertising is probably the most important promotion tool for big brick-and-mortar companies. However, with a SEM businesses, advertising is only a supporting factor. The problem is that the majority of SEM businesses lack the scale to be able to effectively contact large numbers of prospects and clients. Furthermore, there aren’t many places on the Web where prospective clients come in flocks. Therefore, advertising is largely PPC-oriented.Actually, online advertising is advertising on the Internet. This particular form of advertising is a source of revenue for an increasing number of websites and companies.A significant number of firms, from small businesses to multinational corporations, incorporate online advertising into their marketing strategy. Online advertisements typically involve at least two separate firms: the advertiser or agency which purchases or sponsors the advertisement and the publisher or network which distributes the ad for display. Because of the close relationship between technical innovation and online advertising, many firms specialize in both. For example, most search engines couple their search service with an advertising program, exploiting the benefits of keyword-based search technology by including ads in search results.Let’s look closer on the most popular online advertising form as traditional banner. PPC advertising form will be explained in details in 8 lessons of our next Step.Traditional Banner
A Web banner or banner ad is a widely used form of advertising on the Internet. This kind of online advertising entails embedding an advertisement into a Web page. It is intended to attract traffic to a website by linking them to the advertiser’s website.Generally the advertisement is constructed from an image (GIF, JPEG, PNG), JavaScript program or multimedia object employing technologies such as Java, Shockwave or Flash, and often employing animation or sound to maximize presence. Images are usually in a high-aspect ratio shape. Banners are usually placed on Web pages that have interesting content, such as a newspaper article or an opinion piece.The Web banner is displayed when a Web page that references the banner is loaded into a Web browser. This event is known as an “impression”. When the viewer clicks on the banner, the viewer is directed to the website advertised in the banner. This event is known as a “click-through”. Many banner ads work on a click-through payback system.At the base of a click-through system are mathematical calculations of the number of users (users clicking on an ad) divided by impression number. We remember that the term impression means the number of times the ad was delivered. For example, if your banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1%.It should be noted that banner ad click-through rates have fallen over time, often measuring significantly less than 1% and choice of an appropriate advertising site with high affinity is very important crucial factor in this situation. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads.When the advertiser scans their log files and detects that a Web user has visited the advertiser’s site from the content site by clicking on the banner ad, the advertiser sends the content provider a small amount of money (usually around five to ten US cents). This payback system is often how the content provider is able to pay for the Internet access to supply the content in the first place.Nine Common Banner Ad Mistakes to Avoid
Banner advertising expert Rob Frankel advises e-marketers to avoid the following mistakes when creating their banner ads:
Overloaded. Too many colors. Too slow to load. Too hard to read. Nobody wants to grow old waiting for your banner ad to load. Frankel advises designing banner ads that will load and view easily with last year’s technology. “Personally, I design pages for people running no more than Netscape 2.0 on the equivalent of a 486 running at 66 MHz and 256 colors,” says Frankel. “That means your art should still be no deeper than eight bits, unless you’re a true minimalist and can bring it in at no more than four.”
Unattractive. People like good-looking stuff. What works for Cindy Crawford can work for you, too. So if you’re not a digital Da Vinci, find someone who is and pay him or her a few bucks to make your banner look great.
Too many bells and whistles. Just because technology offers you bells and whistles doesn’t mean you have to use every one of them. Chances are that the average Web surfer has been through several sites before he or she gets to your banner. Give the reader a break. Don’t overdo motion, movement, or message changes. And allow some time to digest what you’re displaying.
Illiteracy and illegibility. These are the ads that make you scrunch up your face and twist your head trying to make some sense out of the illegible scrawls that some knucklehead thinks are cool. But prospects don’t care how cool you think it looks. If they can’t read it, you’ve lost any chance of their clicking on it.
Missing link. Your banner looks great but isn’t linked to anything. That’s a mistake that anyone should be able to detect and prevent with a simple check.
Link errors. Your banner looks great. The link works… directly to a 404 message (meaning the requested Web page was not found). Maybe this one isn’t your fault. Maybe your webmaster inadvertently forgot to tell you he or she switched servers. But even if it was the webmaster’s fault, who do you think will catch the blame? Keep checking those banner links every few days.
Weak message. The same things that make good ads make good banners. Unfortunately, the same things that make bad ads make horrible banners. If you don’t know how to write and design a clever, compelling message, hire someone who does. Nothing turns off poten­tial prospects more than a really stupid attempt at being clever, an offense usually committed with the aid of a bad pun. Remember that your ad is a representative of you, containing a smattering of your personality and ability. If it looks dopey to a viewer, guess what they’re going to think about you? It’s better to be clear than clever.
Confusing message. Your banner looks pretty, but nobody understands what the heck you’re talking about. This is the number-one mistake made by do-it-yourselfers.
Boring banners. One common mistake is that your banner doesn’t compel your recipients to respond within a certain time frame. Without a deadline, there is no immediacy to act, which means they scroll away until they forget it.
Web banners function the same way as traditional advertisements are intended to function: notifying consumers of the product or service and presenting reasons why the consumer should choose the product in question, although Web banners differ in that the results for advertisement campaigns may be monitored real-time and may be targeted to the viewer’s interests.The evidence shows that Web banner ads are restricted by high cost and limited physical banner area. Let’s look at the Marketplace section of SearchEngineWatch.com:Out of 10 advertisers only 3 are in the SEM services business. These companies – BruceClay, KeywordRanking and MoreVisibility – are the largest players in the industry; they have enough wherewithal to run these ads and enough resources to satisfy a large flow of traffic.Pay per click advertising
Pay per click or PPC advertising is an arrangement in which webmasters (operators of websites), acting as publishers, display clickable links from advertisers, in exchange for a charge per click. As this industry evolved, a number of advertising networks developed which acted as middlemen between these two groups (publishers and advertisers). Each time a (believed to be) valid Web user clicks on an ad, the advertiser pays the advertising network, who in turn pays the publisher a share of this money. This revenue sharing system is seen as an incentive for click fraud.Though many companies offer pay per click system as one of their services. Google AdWords and Yahoo! Search Marketing (formerly Overture) and MSN AdCenter are top players in this field.As far as PPC advertising is the first advertising option for any new on-line businesses it became one of the dominant and widely used marketing tools.What you should remember:
A Web banner is displayed when a Web page that references the banner is loaded into a Web browser. This event is known as an “impression”. When the viewer clicks on the banner, the viewer is directed to the website advertised in the banner. This event is known as a “click-through”.
Banners should be placed on Web pages that have interesting content, such as a newspaper article or an opinion piece.