There’s a good deal of fear in the market.
At the moment, the Dow is down 646 points, as the NASDAQ sinks 241.
All thanks to the omicron virus, which is now in 43 U.S. states, and about 90 countries.
Worse, Michael Osterson, director of the Center for Infectious Disease Research and Policy at the University of Minnesota says, “We’re really just about to experience a viral blizzard,” as quoted by CNN. “In the next three to eight weeks, we’re going to see millions of Americans are going to be infected with this virus, and that will be overlaid on top of Delta, and we’re not yet sure exactly how that’s going to work out.”
While research suggests omicron is less severe than previous strains, fear is still on the rise, which leads to higher volatility, which can lead to severe market sell offs.
So, what’s the best way to protect your portfolio from omicron-fueled chaos?
One way is to trade volatility-based ETFs. In fact, some of the top ways to do that include:
ProShares VIX Mid-Term Futures ETF (VIXM)
At $33 a share with an expense ratio of 0.85%, the VIXM ETF tracks the performance of the S&P 500 VIX Mid-Term Futures Index. Along the way, the ETF allows investors to “profit from increases in the expected volatility of the S&P 500, as measured by the prices of VIX futures contracts,” as noted by ProShares.
ProShares Ultra VIX Short-Term Futures ETF (UVXY)
At $18.55 with an expense ratio of 0.95%, the UVXY ETF was designed to match 1.5x the daily performance of the S&P 500 VIX Short-Term Futures Index.
ProShares VIX Short-Term Futures ETF (VIXY)
At $19.70 with an expense ratio of 0.85%, the VIXY ETF tracks the performance of the S&P 500 VIX Short-Term Futures Index. The index tracks the returns of a collection of futures contracts that have a weighted average of expiration to one month, according to Financhill.com.
As we look for trade ideas, the U.S. government just handed over a potential big win for one industry. Will we see a boost to the clean energy stocks after the Senate voted to unlock nearly $370 billion this past weekend?
What does all of this mean for the future? Are the jobs reports good or bad?
Keep reading to find out the key levels for the S&P 500 and what reports are likely to move the markets this week.
We could see another strong month ahead for tech and there’s one symbol that you may want to add to your trading list.
Keep reading to learn more about the one symbol that could have a strong August.
As the markets remain relatively flat, theta decay is your friend this week so I thought I’d write about a trade that has been showing remarkable accuracy lately.
This one trade has a 90% accuracy rate. Keep reading to find out more.
It wasn’t too long ago that the market was reacting (or overreacting) to every piece of news that was published. Over the last month and a half, the markets have settled down some. That can be seen from the VIX (volatility index) which has been steadily decreasing since the mid-June market lows.
The Mediots Are At It Again
As we’ve explained over the last few months, it was likely that the U.S. economy would meet the ‘technical’ definition of a recession (two or more consecutive quarters of negative GDP).
It’s official, the Fed increased interest rates by 75 basis points for a second straight meeting. Inflation remains high, job growth is slowing, and consumer confidence is at historic lows.
Maybe that’s why investors are rushing toward dividend investing to protect their portfolios. With a recession likely on the horizon, if we’re not there already, and dividend payouts projected to increase throughout 2022, there are three quality companies you should consider for your portfolio.
What can learn from the major companies that reported earnings?
Alphabet (GOOG/L) released earnings and missed overall, but their ad revenue beat expectations so their stock went up after hours. Microsoft (MSFT) missed on cloud revenue and ad revenue and their stock went down. Great.
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