Three of the Best Ways to Trade Volatility


 
 
02:45 11/14/2018

Two days ago, markets fell 400 points on a rising US dollar, Apple concerns, and trade concerns.

Technically, things didn’t look much better, we noted.

After partially refilling the October 2018 gap, the DJIA again came under pressure, unable to hold its 50-day moving average. With such considerable tension, the market could again break below its 200-day, we also noted.

Along with those notes, we again highlighted three safe ways to trade volatility.

Velocity Shares Daily 2x VIX Short-Term ETN (TVIX), which traded at $38.88. The TVIX is now up to $47.30 a share, and could run back to $60.

iPath S&P 500 VIX Short-Term Futures (VXX), which traded at $34.54. The VXX is now up to $37.28 and could run back to $42.

ProShares Ultra VIX Short-Term Futures (UVXY), which traded at $50.78. The UVXY is now up to $59.16 and could run back to $72.



With today's 230-point pullback, we again broke the 200-day to the downside. From here, we could potentially test a low of 24,122. Unless something miraculous happens, such as an end to the trade war, or a pullback in the US dollar, we could sink another 1,000 points on the Dow.

Hopefully that won’t happen. But just be prepared for it.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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