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
- About Those Eyeball-Based Valuations: "Half Of Twitter Accounts Created In 2013 Have Already Been Deleted" | ZeroHedge
- Are Low Rates Responsible for High Valuations | Financial Sense
- “An Unstoppable Zombie Holiday” – Humanity Shudders As America Exports Black Friday To the World | ZeroHedge
- China Manufacturing PMI and Output Back in Contraction | Financial Sense
- We've CoMe A LoNG WaY... | ZeroHedge
- False Confidence Rising In The US | ZeroHedge
- Good News: GDP Revised Higher | Financial Sense
The most relevant financial news and articles from the Internets
- Which Is America's Best City? | BusinessWeek
- Pele in 'special care' as condition worsens -... | Business Insider
- Nigeria mosque blasts: 92 dead at one hospital morgue | Business Insider
- European Stocks Are Flat And Some Technical... | Business Insider
- Here's Some Gossip About Why Twitter Didn't Acquire SoundCloud (TWTR) | Business Insider
- BLACK FRIDAY: Here Are Best Deals On Electronics Today | Business Insider
- THE DRONE GIFT GUIDE: Drones For Every Budget [Up To 55% Off] | Business Insider