Issue #193
Dear Member,
As I mentioned last week, volatility in the U.S. stock market is picking up. But at the same time the equity markets have, for the most part, also been caught in a trading range, just breaking to new highs late last week.
I believe the markets have run a little too far, too fast and are now poised to pull back. At the same time, I see the volatility of the markets increasing as prices begin to drop.
Therefore, I recommend all subscribers act on the below recomendation as soon as possible and purchase 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.
|
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. Place a protective sell stop at $25.50 stop, good till cancelled. |
Hold all other positions, with their related stops, and stay tuned.
Best wishes,
Larry
