For those who were wary of a potential pullback in the S&P 500 index, traders can look to the ProShares Short S&P500 (NYSEArca: SH), ProShares UltraShort S&P500 ETF (NYSEArca: SDS), Direxion Daily S&P 500 Bear 3x Shares (NYSEArca: SPXS) and ProShares UltraPro Short S&P 500 ETF (NYSEArca: SPXU).
Lastly, investors can also hedged against a dipping Nasdaq through bearish options as well, such as ProShares Short QQQ ETF (NYSEArca: PSQ), ProShares UltraShort QQQ ETF (NYSEArca: QID) and ProShares UltraPro Short QQQ ETF (NasdaqGM: SQQQ).
In a potential sign of positive trends ahead, the Almanac revealed that midterm years tend to correspond with extremely strong Octobers, with the Dow returning an average 3.1% in mid-term years for the month, the S&P rising 3.3% and the Nasdaq surging 4.2%.
Over the past month, the Invesco QQQ Trust (NASDAQ: QQQ) increased 1.0%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) gained 1.6% and SPDR S&P 500 ETF (NYSEArca: SPY) rose 0.8%.
However, investors may have to be prepared for more swings. October has been historically the most volatile month of the year as measured by the standard deviation for major indices. Since 1896 when the Dow was created, the standard deviation of the Dow’s daily changes has been 1.44% for every October, compared to 1.05% for all the other months.
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