Stocks Waver on EuroTrash
The only investment the Masters can endorse today is the iPath S&P 500 VIX Short-Term Futures ETN (VXX). The fund is up 3.7% today and trading around $45 per share. Investing in the VXX is very risky, this is a timely trade and should not be played long term. However with the uncertainty in Europe with Greece and Italy taking center stage betting on volatility seems to be in order.
When fear hits the market and the Dow swings triple digits, the VXX tends to have a great day. The VXX tracks a perpetual (and hypothetical) 30-day VIX future. It typically tracks about half the daily move in the CBOE Market Volatility Index (VIX), though it's wildly variable.
What's clear is that EuroTrash is impacting our stocks, its why the Masters like the VXX for day trading. We have no clear direction of how Italy is going to clean-up its mess. Greece and Italy have new leaders, but no new solutions.
Trade accordingly and be defensive. Adding a little VXX to the portfolio could help in the interim as we will continue to expect stocks to flip flop.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- "The Time Is Now" For Markets To Price In China's Next Slowdown, A Gloomy Morgan Stanley Warns | ZeroHedge
- Everything Is Not Awesome! Study Finds LEGOs Becoming Increasingly Violent | ZeroHedge
- Governments Are Tightening the Noose on Tax Evasion | Financial Sense
- Is This The Scariest Chart Out There? | ZeroHedge
- The Biggest Bitcoin Arbitrage Ever? | ZeroHedge
- BCA: Global Equities Hanging By a Thread | Financial Sense
- “Road Trains” Are Ready: Who Wins, and Who Loses? | Financial Sense
The most relevant financial news and articles from the Internets
- It hasn't gotten any better on Wall Street, and that does not bode... | Business Insider
- One parent behavior may affect kids of divorce more than divorce itself | Business Insider
- Billionaire investor Peter Thiel explains the 2 worst pieces of... | Business Insider
- 5 books that can help you achieve work-life balance | Business Insider
- All 460 Sports Authority stores are closing — here’s when clearance sales begin | Business Insider
- Draymond Green will not be suspended for kicking Steven Adams, but does receive a... | Business Insider
- Why it's important that Google is building AI that can create... | Business Insider