BetaShares Australian Equities Bear Hedge
The inverse ETF’s over the ASX200 are performing well. BEAR (single inverse ETF) and BBOZ (double inverse ETF) are both trading higher as the ASX200 XJO index retreats from the recent highs.
These instruments act as a hedge against existing long equity holdings or as an outright trading position in portfolios.
Chart – BEAR ETF
Apply a stop loss, should the XJO index reverse and trade up through the highlighted range.
BetaShares Australian Equities Bear Hedge
The inverse ETF’s over the ASX200 are performing well. BEAR (single inverse ETF) and BBOZ (double inverse ETF) are both trading higher as the ASX200 XJO index retreats from the recent highs.
These instruments act as a hedge against existing long equity holdings or as an outright trading position in portfolios.
Chart – BEAR ETF
Betashares Australian Equities is up 5% from the recent low as the XJO rolls over below the overhead resistance, which has built up at the 6200 level.
We expect a similar pattern to develop in the S&P500 equivalent BBUS.
Betashares Australian Equities is the Australian Equities Strong Bear Hedge Fund. The inverse ETF provides an approach to profit from, or protect against, a declining Australian sharemarket.
The ETF is designed to generate magnified positive returns when the market goes down (and vice versa) if the market was to rise.
As a technical reference point, we’re increasing our market hedging whilst the XJO index remains below the 5533 level.
The inverse BBOZ ETF will likely find support should the XJO continue to struggle below the 5533 resistance.
Betashares Australian Equities is under Algo Engine buy conditions. It’s an inverse ETF x2 on the ASX 200 index. Meaning, it goes up in value if the market goes down and on a multiplier of x2.
If the index falls 1% the BBOZ goes up in value by 2%.
Betashares Australian Equities was recently added to the ETF model portfolio. It’s an inverse ETF, meaning it goes up in value when the market goes down. The ETF has x2 multiplier.
The chart below shows the build up in activity, (reflected in the high volume traded), over the last few weeks.
Our ALGO engine triggered a buy signal on BBOZ at $14.50 on May 3rd. This “higher low” formation is referenced to the low trade of $14.40 on January 10th.
BBOZ is the BetaShare ETF linked to the ASX 200 Stock Index. When the index falls, the price of BBOZ will rise, and vice versa.
We calculate that the price of BBOZ will be near $16.90 when the ASX 200 trades back to the April 3rd low of 5680.
Since reaching a high of 6135 on May 18th, internal momentum indicators have been trending lower for the ASX 200 Index.
For more information about BBOZ and opportunities to trade ETFs, in general, call our office on 1-300-614-002.
BetaShare ETF BBOZ
Our ALGO engine triggered a buy signal in the BBOZ ETF into yesterday’s ASX close at $14.80.
BBOZ is an inverse equity ETF based on the shares which trade in the ASX 200 index.
Since BBOZ is an inverse ETF, the price will rise as the ASX 200 index trades lower.
The “higher low” buy signal is referenced to the January 14th low of $14.40.
With the ASX 200 index trading near the highs of the year, investors can look to buy BBOZ to hedge their exposure to a wide basket of shares in just one ASX regulated transaction.
As the local share index has rallied sharply over the last 4-weeks, the price of BBOZ has dropped over 14% from $16.85 to $14.50.
For more information about how to profit with trading strategies in the BBOZ ETF, call our office at 1-300-614-002.
BetaShare BBOZ ETF
The XJO 200 Index continues to trade within a broad, sideways “Flag” pattern bound by the June 8th low of 5624 and the June 15th high of 5834.
The index is currently trading at 5666, which puts the key support level of 5624 within reach. A break of this level would open up range extension to the downside and find the next key target at 5578.
Investors looking to profit from a move lower in the XJO can buy the BetaShare ETF with the symbol: BBOZ.
BBOZ is an inverse ETF which means the unit price increases as the XJO Index trades lower.
BBOZ also has a 2.5% weighting, which means a 1% move in the XJO will have a 2.5% impact on the unit price of BBOZ.
The current price of BBOZ is $17.80.
We estimate that unit price of BBOZ will be $19.50 when the XJO trades down to 5578.
ASX XJO Index
BetaShare Inverse ETF: BBOZ
Over the last three trading sessions, volume for the Dow Jones 30 and the ASX 200 have both dropped by about 20% versus their 3-month rolling averages.
Some of the reduction in turnover is seasonal due to the Northern summer. However, many analysts are pointing to tonight’s Senate testimony from FED Chief Janet Yellen as a focal point which has kept traders on the sidelines.
At around midnight Sydney-time, Ms Yellen will address the Senate Banking Committee. She will update lawmakers on interest rate policy, the rate of balance sheet normalization and take questions.
The “cause and effect” logic is that if Ms Yellen’s comments reflect a more “hawkish” position from the FED on rate hikes and reducing the $4.5 trillion balance sheet, US equity markets will trade lower, which will likely spill over to the ASX.
Investors looking to profit from a lower XJO 200 or SP 500 can look to buy the BetaShare ETFs with the Symbol BBOZ or BBUS.
Both of these are inverse ETFs, which means that the unit price will increase as the indexes trade lower.
In addition, both of these ETFs are weighted, which means that a 1% change in the respective index translates to a 2.5% move in the ETF.
BBOZ is currently trading at $17.80, we calculate that the price would rise to $18.60 if the XJO 200 traded back to the June 8th low of 5620.
BetaShare ETF BBOZ
BetaShare ETF BBUS
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