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
- A Confused Janet Yellen Tries To Figure Out If Stocks Are In A Bubble, Fails | ZeroHedge
- ECB Embarrassment: €18 In QE Generated Just €1 In GDP Growth | ZeroHedge
- Frontrunning: September 23 | ZeroHedge
- Bloomberg: Let Corporations Manage Immigration - Not! | ZeroHedge
- The Charlotte Riots: What They Are Not Telling You | ZeroHedge
- The Problem With Helicopter Money | Financial Sense
- Merkel Rules Out Bailout For Deutsche Bank: Depositor Bail-In Coming Up? | ZeroHedge
The most relevant financial news and articles from the Internets
- A Russian toddler survived three days in the Siberian... | Business Insider
- The 18 public colleges where students go on to earn the most money... | Business Insider
- Credit cards are going the way of fax machines | Business Insider
- 13 things to take with you the next time you go running outside this fall | Business Insider
- You can’t understand the Fintech Revolution... | Business Insider
- A new study finds there's a major difference between how rich... | Business Insider
- 21 incredible restaurants everyone should eat at in France | Business Insider