If the market is really going for a quick sell-off, UVXY is a better candidate than an inverse index ETF such as SQQQ or SPXS. But it is only for the quick sell-off, when the market is trending hard to the downside. If we get chop within a downtrend, a strong bounce or a slightly longer consolidation, the inverse ETF will be better. I chose UVXY because SPY is still holding up near its highs while QQQ and the Russell are already showing weakness. To me the market still has a lot of room to the downside, so what I'm expecting is a really quick flush. That is the best case, and it is a bit of a gamble on how the downtrend plays out. UVXY is really tricky. I've stumbled quite a lot trading it: if we don't get a quick follow-through to the downside, it will just chop you up. I took so many losses going long UVXY, so I don't recommend trading it unless you clearly know what you are doing.
Source: EP108 | 23 Oct 2026