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
- More and More Outlets Are Suggesting a Carry Tax on Physical Cash | ZeroHedge
- Julian Assange On The TPP: "Deal Isn't About Trade, It's About Corporate Control" | ZeroHedge
- How Healthcare Is Dooming the U.S. Economy (Three Charts) | Financial Sense
- Elizabeth Warren Needs You To Help Her "Blow Debt Free College Wide Open" | ZeroHedge
- S&P Ramp Stalls At 50% Retracement (For Now) | ZeroHedge
- Why Russia Is On A Gold Buying Spree | ZeroHedge
- Financial Insanity Grips The World | ZeroHedge
The most relevant financial news and articles from the Internets
- 3 reasons Etsy is in big trouble | Business Insider
- Why a former Goldman partner teamed up with a former bank robber on this new... | Business Insider
- Laptop Computer Reviews - BusinessWeek | BusinessWeek
- Google now offers unlimited free storage for all your photos and videos (... | Business Insider
- UK's Cameron meets EU leaders on referendum reform push... | Business Insider
- Mourinho says priority is keeping title-winning team... | Business Insider
- Global study finds early treatment is effective against... | Business Insider