How to Hedge This Stock Market Rebound

How to Hedge This Stock Market Rebound

Posted On June 25, 2020 3:02 pm

With the recent rebound in the stock market, the “SPDR Trust (SPY – Get Rating)”  is now just 4% away from its February all-time highs.  But, with the COVID-19 virus still spreading, there is a rethinking of the pace and scope of the reopening, causing concern among investors that the rally may have been fueled by an overly optimistic outlook. Over the past few days, the retrenchment came fast and furious as companies such as “Apple (AAPL)” closed stores across the south from Arizona to Texas and Florida — and “Disney (DIS)” is being forced to delay the opening of parks and film releases.

Regional governments such as New York are now delaying the reopening and enforcing quarantine rules for out-of-state travelers. This led to the major indices suffering a 3% decline on Wednesday, breaking a nine-day winning streak for the “Nasdaq 100 (QQQ – Get Rating)” and their worst day in over a month.

While mega-cap and high-growth tech names such as “Zoom (ZM)” and “Redfin (RDFN)” continue powering higher, helping the headline index readings such as the QQQ and SPY remain near highs, there has been renewed damage below the surface as travel and leisure-related sectors get hammered.

Once again, we are… Continue reading at StockNews.com

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Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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