SPDN ETF

The SPDN ETF offers a way to bet against the market, moving inversely to the S&P 500, but it's not for long-term holding. Market's muted response to rate cuts suggests they're already priced in; high S&P 500 P/E ratio supports this sentiment. Weak economic data, potential oil price spikes, and slowing consumer demand could negatively impact market valuations and company earnings.

Wall Street is on the verge of inking a conspicuous downcycle for the week, with the major indices flashing red in late-afternoon trading on Friday. The benchmark S&P 500 is down about 0.7% against Thursday's close, and is about to book a loss of more than 2% for the business week ending July 19.

The Direxion Daily S&P 500 Bear 1X Shares ETF takes a bearish bet against the market, providing short-term speculation opportunities. The ETF has low expense ratios and allows access to shorting at pretty low fees compared to the fees associated with shorting directly. The value erosion risk and daily resetting quirk make SPDN unsuitable for long-term investing, but upcoming inflation data could make it interesting for speculation.

Jerry Wagner is president, founder and chief investment officer of Flexible Plan, a turnkey asset management program (TAMP) with more than $1.5 billion invested in its separately managed accounts.