What to do in a declining market

S&P has broken out down through its 2 year trend line. When this happens, more downside is expected. Its next stop will be the Dec low at around 1972. If this support cannot hold, then the Oct low of 1862 comes into play. So be prepared for this correction ongoing.

Buying some SDS may help you to hedge against this downturn but a better way to profit from a declining market is to short a stock which is also in the downtrend.  Keurig Green Mountain (GMCR), the famous manufacture of coffeemakers such as K-Cup, Vue, Rivo, K-Carafe used to be the Wall Street darling. It had enjoyed almost always a sharp moonshot of its stock prices after each earning report in the past couple of years. As such, it is supper expensive in terms of its valuation. But finally the Wall Street has lost its patience, sort of speaking. It failed to shot up after its last earning report and has since then moved down. Given its ridiculous valuation, the change of the mood of the Street, and the overall weak market at the moment, I think it is a safe bet that GMCR will further go down quickly. Short GMCR via its put options is will likely make you some good money.