How To Short The Market… Now

This fear gripping the market right now is pretty strong, and I think it will get stronger in the near term. This trade would be the conventional way of capitalizing on the downside movement, by shorting the market (SPY), and the weakest index at that. For others, you can simply go long SDS, but remember that SDS is 2x the inverse of SPY. My gut tells me that we are going to have a little bounce to the upside on SPY as we sold off real fast, and real hard right into a strong demand level. But if that level is broken, we could see things fall Very fast! Here is how the SPY  trade sets up:

— Short below: $125
— Stop: $127.25
— Target: 118.25