It’s been a challenge in the markets and exchange traded fund (ETF) realm lately, to put it mildly.

Things have picked up some in recent days, but as today illustrates: we’re not out of the woods yet. Have you got some kind of plan?

Glen Rogers for seeking Alpha gives us five of his ideas, and we add in some of our own thoughts, too:

  • Raise cash: Reduce or sell some of your biggest gainers and losing stocks that are not going to rebound any time soon. Get out of any positions that have declined 8% or more off their highs or dropped below their 200-day moving averages.
  • Hedge your energy position: Reduce positions in energy-related stocks and think about a short oil or gas ETF, such as ProShares Ultra Short Oil & Gas (DUG). Many fuel-related ETFs have declined in the last week and month, some significantly off their recent highs.
  • Hedge your basic materials position: While this may not be a strategy for every investor, there are plenty of opportunities with ProShares or Rydex. Just be aware of the risks before you get in.
  • Start rotating into health care/start buying financials: This sector may be ready to turn around as it has been badly beaten. And every body needs health care, even in an economic downturn. As with any kind of investment, though, we don’t recommend buying before they’ve crossed their trend lines. Financials in particular may have had a good run recently, but they’ve still got a ways to go.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.