Tips for Trading the Market Chaos

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The sky is falling. The sky is falling – again.

The markets are taking another nasty hit on bank failure contagion fears. The Dow is down 380 points.  The S&P 500 is down 37.  The NASDAQ is own 85 because of it.  Even the volatility index just spiked above 20, telling us fear is erupting.

However, as we’ve discussed here, the best way to prepare for chaos is to invest in volatility-related funds, such as:

ProShares Ultra VIX Short-Term Futures ETF (UVXY) — The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index.

iPath S&P 500 VIX Short-Term Futures (VXX) — The VXX ETN provides exposure to the S&P 500 VIX Short-Term Futures Index.

ProShares VIX Short-Term Futures ETF (VIXY) — ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.