How to Invest in the Shadow of a Possible Trade War

The video discusses the impact of increasing trade tensions between the US and China on the stock market, focusing on the performance of major indices like the S&P 500 and Russell 2000. Expert Steve Sosnick provides insights into market reactions and suggests trading strategies, including hedging and bearish approaches, to navigate the volatility. The discussion highlights the unexpected use of the Russell 2000 as a safe haven and explores the implications of recent market movements.

What misconception about the Russell 2000 is highlighted in the context of trade tensions?

• It is more affected by international trade tensions.

• It is primarily composed of tech stocks.

• It is completely insulated from trade tensions.

• It is less volatile than the S&P 500.

According to Steve Sosnick, what event made the trade war more tangible?

• The correlation between the S&P 500 and Russell 2000.

• The sell-off in the NASDAQ.

• The announcement of tariffs on washing machines.

• Harley-Davidson's decision to move jobs overseas.

What is the recommended hedge trade involving the Russell 2000 and S&P futures?

• Buying Russell 2000 and selling S&P futures in a 2:3 ratio.

• Selling Russell 2000 and buying S&P futures in a 3:2 ratio.

• Buying both Russell 2000 and S&P futures equally.

• Selling both Russell 2000 and S&P futures equally.

What is the potential bearish strategy discussed for investors?

• Selling a call on the E mini futures.

• Selling a put on the E mini futures.

• Buying a call on the E mini futures.

• Buying a put on the E mini futures.

What is the purpose of purchasing options around the 200-day moving average according to Steve Sosnick?

• To capitalize on a potential market rally.

• To hedge against a market crash.

• To take advantage of a stable market.

• To ensure gains in a bullish market.