Issue #156
| For all subscribers:For each $25,000 in equity you are trading …
Buy 100 shares of iPath S&P 500 VIX Short-Term Futures ETN, symbol VXX, at the market and place a good-till-cancelled protective sell stop at $26.90. |
Dear Member,
The Fed begins their two-day meeting today and all eyes will be on tomorrow afternoon’s FOMC policy statement and the Fed officials’ current sentiment towards interest rates. There is a sense the Fed may pull forward interest rate hikes from the current consensus view of June 2015, as the timing of the first increase.
But, no matter what the Fed says in their statement tomorrow, I believe the trend for higher volatility in U.S. equity markets is just beginning.
The increased volatility will be caused by several forces, including Scotland’s vote on independence, the Fed meeting, rising geo-political conflict, where my models are highlighting the mid-September to mid-November period as particularly vulnerable to economic shocks …
And the very real threat that we may already have seen the highs in the U.S. stock market.
Therefore, I recommend all subscribers act on the above recommendation as soon as possible and purchase the iPath S&P 500 VIX Short-Term Futures ETN (VXX) at the market.
VXX holds long positions in the first and second month CBOE Volatility Index futures contracts. The CBOE Volatility Index, or VIX, as it is more commonly referred to, is the typical measure of market volatility for U.S. equities.
This is a great way to profit from increased market volatility.
Hold all other positions, with their related stops, and stay tuned.
Best wishes,
Larry
