Prediction for this Week's Trading: Pain

Mr. T - Pain

How is trading going to be this week?  Painful.

Last Friday was bad enough, now we have more uncertainty to look forward to which means volatility is going to be the true winner.  Here comes the pain.

Psycho - Shower Scene

Its as easy as lather, rinse, repeat.  The VXX is almost at its 12 month low...again.

Its almost that time again fellow Masters, we've done this trade countless times -- Buy the iPath S&P 500 VIX Short Term Futures TM ETN (VXX) when it hits a 12 month low.  Only 3.8% more and we execute this trade again.

 

Volatility Ready to Spike (VXX, UVXY)

vxx30minapril252012.png

Complacency has built up again, and that means the VIX is ready to spike again.  VXX is a nice short term play.

The VIX has formed a tight bull flag pattern over the last two weeks in April, and a breakout would spike the VIX close to 23.  VXX is one way to play it.  The more aggressive U

Sling Blade Covered Calls

Here are today's Covered Call Picks for Tuesday 04-17-2012.

What's a Covered Call?

The covered call is a strategy where an investor writes a call option contract (sells an option) while at the same time owning an equivalent number of shares of the underlying stock.If this stock is purchased simultaneously with writing the call contract, the strategy is commonly referred to as a buy-write.

While you may have heard that trading options is risky business, covered calls are actually a very conservative strategy, and most brokerages even allow retirement IRA accounts to write covered calls.

Volatility is Winning (VXX)

Walter Yelling - Big Lebowski

Just like Walter flying off the handle, volatility is the best bet in town.

Erase those gains from yesterday and then some, stocks are down again on Friday.  The iPath S&P 500 VIX Short-Term Futures ETN (VXX) is up 3.5% and at $18.96 a share.  We speculated back (Cut and Paste the VXX action) when it hit a 12 month low a few weeks back this was the trend to buy.


Stocks Down except Apple and VXX

Volatility - Large Pic

In Apple and Volatility we Trust.  Its the trade for Spring 2012.

Everything is down today, however the two stocks that are trading higher are Apple Inc. (AAPL) and iPath S&P 500 VIX Short Term Futures TM (VXX).  How to recap those losses?  Sell the house and buy shares of Apple and the VXX.

Yoda Graffitti

Mastery highlighted some money stocks picks including Safe Stocks, TEVA, a wild ride with the VXX and more.

The last week of March included such gems as Teva, General Electric, the VXX, and many more.  Behold the best content of the week and enjoy a cut from THE WALL.

 

Cut and Paste the VXX Action

Cut & Paste - CTRL C CTRL V

Last week the VXX hit a bottom then bounced 6% the next day, today same results.

Holy cut and paste Batman, here we go again with the iPath S&P 500 VIX Short-Term Futures ETN (VXX) bounces yet again.  Fellow Masters this happened last week and it rebounded 6% the next

The VXX Falls Again

Volatility - Large Pic

Another 12 month low today for the VXX.  Last time it did this it bounced back 7% the next day.

The iPath S&P 500 VIX Short-Term Futures ETN (VXX) hit $15.92 today as the bulls lead the market to a great Monday start.  However its important to note that this happened last week and the VXX bounced back 7% the next day.


 

Volatility is all but Dead

Volatility - Large Pic

Food for thought, the VXX hit a new 52-week low today and its never been this low.

The bulls are very much in control of the market, it shows at the iPath S&P 500 VIX Short-Term Futures ETN (VXX) got down to $18.34 today.  Mastery has recommended the VXX in the past but never as a long term trade, its only meant to capture when the markets panic.  There's no sign of panic these days, but is that a good thing?