Quiet Week Ahead for the Markets (XIV)

Submitted by SC on Sat, 06/16/2012 - 18:33

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There is so much anticipation about so-called market moving events for the week ahead that the action is sure to be....quiet. Nothing much will happen next week, but there is a way to profit during a quiet market.

Despite the Greek election this weekend, Fed, and G20 meeting next week the markets may just trade flat and quiet instead. The bias is still moderately bullish though given last week's gains. A slow market implies a reduction in volatility or the VIX.

As the VIX decreases, typically the VIX futures decline as well, and there is a way to profit using a VIX futures related Exchange Traded Fund. XIV rises as the VIX futures decline. XIV surged up on Thursday and Friday with the VIX tumbling, and a June target for XIV is up in the $11 range according to previous analysis:

Excessive Greek Fears Going into Next Weekend's Election (XIV)

Good Call

Submitted by Anonymous on Sun, 06/17/2012 - 02:58.

Great idea SC. What's your price target on the XIV?

$11.75 is a spot to watch.

Submitted by SC on Sun, 06/17/2012 - 13:28.

$11.75 is a spot to watch. The VIX still can slump quite a lot more. This is a short term play only. Once fear evaporates then the markets will become toppy again. Thanks, SC