by Ian Cooper
Markets are getting rocked.
Traders are running to the exits. Inflation is only getting worse. Fears of recession are mounting. Your average American consumer is struggling.
Worse, the Dow Jones is now technically overbought at double top resistance dating back to early May 2022. It’s also over-extended on RSI, MACD, and Williams’ %R. And it’s seeing a good deal of resistance at its 200-day moving average. Plus, not only is the 10-year Treasury up to 2.93%, global rate-hike wagers are pushing aggressively higher, too.
With things getting chaotic again, investors may want to consider volatility-based trades again.
Pro Shares Ultra VIX Short-Term Futures ETF (UVXY)
As the VIX pops, so does the UVXY ETF. For those of you that are new to the UVXY, the ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index. As the VIX moves higher, the UVXY typically follows.
iPath S&P 500 VIX Short-Term Futures (VXX)
The VXX provides exposure to the S&P 500 VIX Short-Term Futures Index.
ProShares VIX Short-Term Futures ETF (VIXY)
ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.
All are still solid opportunities as fear makes a big return.