Where will Stocks Go from Here?
Weapons of choice for today's trading are the iPath S&P 500 VIX Short Term Futures TM ETN(VXX) and iPath S&P 500 VIX Mid-Term Futures ETN (VXZ)
The Dow Jones is having a hard time staying above 14,000. The psyschology of current trading may finally peel back the problems we haven't escaped sine before Obama stepped back into office (i.e. U.S. Debt ceiling, EU and U.S. economic worries). Should any panic strike the market, the profit taking will begin and stocks will decline.
Mastery recommends taking out a small insurance policy by making a small position (less than 2% of your portfolio) via the VXX or VXZ. Both VIX trading ETFs are never meant to be a long term play. A simple lather, rinse and repeat if necessary ploy but never hold longer than a month. As most of you trading know the VXX and its friends can bite hard and leave you with nothing. We are preying and betting on 'fear' with these plays.
There are plenty of reasons and Negative Nancy's out there that have been screaming the market is going to tank. Those 'black swan' voices are going to get louder the longer we stay fighting the Dow Jones at 14,000. It's just the way the market works, the end. Don't fight it.
VXX and VXZ INFO
iPath S&P 500 VIX ST Futures ETN (VXX) shares have traded between $22.17 and $116.84 over the past 12 months. VXX shares are trading today at $22.43 a share.
iPath S&P 500 VIX MT Futures ETN (VXZ) shares have traded between $21.83 and $57.49 over the past 12 months. VXZ is trading today at $22.02 a share.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- SaVinG PRiVaTe EmaiLS | ZeroHedge
- Swiss Franc Plunges On FinMin "Minimum Exchange Rate" Comment | ZeroHedge
- Peter Schiff Warns "Don't Be Fooled By The Madness Of Crowds" | ZeroHedge
- Crude Parallels: A River Of Denials | ZeroHedge
- VIX Tops 15 As Stocks Slide To 2-Week Low | ZeroHedge
- Greek Pensioners To Fund Ukraine's Government: Syriza Will Tap Pension Funds To Pay IMF | ZeroHedge
- Retirement At The End Of A Rope | ZeroHedge
The most relevant financial news and articles from the Internets
- The woman who runs the SI swimsuit issue started as an assistant who spent 8 hours a day... | Business Insider
- We just learned more about the sequel to one of the hottest phones of 2014, and it sounds a lot... | Business Insider
- Dozens missing feared dead after mine blast in Ukraine... | Business Insider
- After-... | StreetInsider.com
- Concern grows for civilians as noose tightens around... | Business Insider
- Hervé Falciani: hundreds like me were working to drag down... | Business Insider
- Kerry, Iran FM in new nuclear talks | Business Insider