The Return of Volatility

Psycho - Shower Scene

Mastery told you volatility was back in style two weeks ago.

As we predicted the bet on the iPath S&P 500 VIX Short Term Futures TM ETN (VXX) has been fruitful.  The VXX has bounced back 12% since we said buy.

Where will Stocks Go from Here?

Magic 8 Ball

Mastery doesn't like the current pin action.  Time to place a small bet on volatility.

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)

Banksy - Clean Indian Paintings

Fiscal Crap, Volatility returns, and maybe faith in Large Caps.

The last full week trading in 2012 was vexed by 'Fiscal Cliff' sorrows.  Its taking away everything from our equities.  Perhaps there is a light at the end of the tunnel with large cap stocks, four in particular.   Mastery turns to  Anheuser Busch (BUD), Walt Disney Co. (DIS), The Coca-Cola Co. (KO) and McDonald's Corp. (MCD).

Over the Fiscal Cliff we Go

300 Movie - Cliff Comic Book Version

Unbelievable. U.S. lawmakers couldn't agree in time thus over the cliff we go. 

The winner these past few days has been the iPath S&P 500 VIX Short Term Futures (VXX), other than that its been a difficult week for equities.  Is the worst yet to come?

Volatility: It's what's for dinner

Volatility - Large Pic

The VXX is up 18% in the last 5 days. Will Volatility make a big comeback in 2013?

Overall,  instruments such as the VXX were a sucker's bet in 2012. Savvy investors know that you're not supposed to hold VXX for an extended period of time.

Friday Stocks Go Down the Hole

300 Movie - This is Sparta Kick

With Boehner's Plan B defeated expect terrible trading Friday.

If you haven't heard Plan B has been dropped and Dow Jones Futures are down 200 points.  Expect a terrible day and a kick in the pants for your 401(k), IRA's, and personal trading portfolios.  It's going to suck.

Holy Mitt Stocks Fall Hard

Mit Romney and Terminators

What a knee jerk reaction from the markets, its bullmitt.

Stocks are falling hard today thanks to an Obama win and the fear of the Fiscal Cliff hits home hard.  It's a big whatever and very sad considering this is how equities repay investors for finally selecting a President.  Its beyond stupid.

Volatility - Large Pic

Just like that from $8 a share to $35, the VXX looks better.  Really?

A bit of nothing up my sleeve work from the from the brain-trust at Proshares.  They did a sneaky reverse split on the iPath S&P 500 VIX ST Futures ETN 's (VXX) on Friday.


Richard Harrow - Boardwalk Empire

Stocks have been falling since last Friday, there's only one person who can help. 

If only we could hire Richard Harrow (from HBO's Boardwalk Empire) to execute the idiots responsible for plunging our stocks since last week.  In the past four trading sessions the Down Jones has erased 225 points.  The S&P has fallen 2.23% since last Friday and its all thanks to negative EU headlines.  Volatility has made a triumphant return.

Case of the Monday's: What to Trade

Office Space - Case of the Monday's

Could be a week of the same ol' EU mess. 

Sunday night and stocks in Asia are falling thanks to the EU uncertainty.  That means a return of volatility could become the norm next week.  Thus cue the ProShares UltraShort FTSE China 25 ETF (FXP) and he iPath S&P 500 VIX Short Term Futures TM ETN (VXX).