Keep an eye on the Volatility Index (SYM: VIX).
Better yet, trade it with:
ProShares Ultra VIX Short-Term Futures ETF (SYM: UVXY) — The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index. When the VIX pops, the UVXY typically follows.
iPath S&P 500 VIX Short-Term Futures (SYM: VXX) — The VXX ETN provides exposure to the S&P 500 VIX Short-Term Futures Index.
ProShares VIX Short-Term Futures ETF (SYN: 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.
Or, you could always but a put option on the DIA, QQQ, and SPY.
That’s because markets could take a hit this week on tariff concerns – and the potential for higher inflation, which could prevent the Federal Reserve from cutting interest rates. All after President Trump signed an executive order placing 25% levies on imports from Canada and Mexico, as well as a 10% duty on goods incoming from China.
Canada retaliated with “tariffs on C$155 billion ($107 billion) of U.S. goods. Those on C$30 billion will take effect on Tuesday, the same day as Trump’s tariffs, and duties on the remaining C$125 billion in 21 days,” as reported by Reuters.
“Mexico has been preparing possible retaliatory tariffs on imports from the U.S., ranging from 5% to 20%, on pork, cheese, fresh produce, manufactured steel and aluminum, according to sources familiar with the matter. The auto industry would initially be exempt,” they added.
And China said it will file a complaint with the World Trade Organization and take countermeasures to safeguard its rights and interests. That, in our opinion, could include the rare earth metals the U.S. desperately needs.
Again, prepare for uncertainty and volatility.
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