Israel's airstrikes on Iran could trigger a market pullback as geopolitical risks heighten volatility and uncertainty. The conflict raises concerns over oil supply disruptions and broader market sentiment shifts. Shorting the market at a significant resistance level may be tactical, but precise timing is crucial. Leveraged short ETFs could amplify returns but also magnify losses, making them suitable for short-term trades rather than long-term holds due to compounding and volatility drag.
Risk management is essential, as escalating tensions could spike volatility indices. Geopolitical shocks often result in temporary pullbacks followed by recoveries, so understanding the market's recovery potential is vital. Alternatives include shifting to defensive sectors like utilities, healthcare, or consumer staples, or employing hedging strategies using options or inverse ETFs to mitigate potential losses. Focus on aligning any action with your risk tolerance and market outlook.