Extreme Volatility: Three of the Best Ways to Protect your Portfolio


 
 
04:48 11/21/2018

Technically, things didn’t look so hot, we noted the other week.

In fact, 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.

That was on November 14, 2018. And we all know what happened next.

Since mid-November 2018, the Dow Jones sank from 22,500 to 24,464. The NASDAQ fell from 7,560 to 6,951. The S&P 500 slipped from nearly 2,800 to 2,649.



As we also noted mid-November 2018, the best way to protect your portfolio from volatility was by betting on more volatility with the following opportunities:

Velocity Shares Daily 2x VIX Short-Term ETN (TVIX), which traded at $38.88. It’s now up to $49.92. The iPath S&P 500 VIX Short-Term Futures (VXX), which traded at $34.54. It’s now up to $38.42. And the ProShares Ultra VIX Short-Term Futures (UVXY), which traded at $50.78. The UVXY is now up to $61.50.

Any time volatility looks set to soar, these are three of the best ways to protect your portfolio.


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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