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
- Juncker Lashes Out At British Lawmakers: "Why Are You Here?" | ZeroHedge
- Why Barclays Thinks The V-Shaped Recovery Is Dead: "Massive Redemptions Are Coming" | ZeroHedge
- President Of The European Parliament: "It Is Not The EU Philosophy That The Crowd Can Decide Its Fate" | ZeroHedge
- Frontrunning: June 28 | ZeroHedge
- Why Is The U.S. Embracing Iran - Again!? | ZeroHedge
- Economic Predictions for Summer 2016: The Epocalypse Keeps Crashing | ZeroHedge
- Brexit or Not, Mediterranean Political Uncertainty Will Roil the EU | Financial Sense
The most relevant financial news and articles from the Internets
- Prepare for 'aftershocks' following the global market earthquake | Business Insider
- A 'Game of Thrones' actor was just as excited as fans for... | Business Insider
- These are the 5 best desk chairs for your home or office | Business Insider
- 27 fascinating facts that make you think twice | Business Insider
- Forget kings — 'Game of Thrones' is setting up a War of... | Business Insider
- These abandoned Mayans cities hold an alarming prophecy for today... | Business Insider
- Hallucinogens Legally Sold as 'Bath Salts' a New Threat | BusinessWeek