Crypto Stocks Are Heating Up: Don’t Miss This Under-the-Radar Opportunity (Trading Whisperer)
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Markets have become wildly volatile.
But that’s to be expected when markets become as over-extended as they’ve become. Plus, we have to remember that inflation is still damaging, and that the Federal Reserve may only cut interest rates another two times in the new year.
In addition, according to Jeremy Siegel, professor emeritus of finance at University of Pennsylvania’s Wharton School of Business, as quoted by CNBC, “I think the probability of a correction next year, which is defined as a 10% drop in the S&P, is getting higher. … the major forces to propel things upward I think have already been built in.”
“Siegel pointed out that this would mark the second time in history that the S&P 500 rallied more than 20% in two straight years. The first time was 1998 and 1999, followed by a dotcom bubble burst in 2000, he said.”
But don’t let that scare you away from the markets. Instead, use the volatility to your advantage, as we also noted just days ago.
We can do that by simply trading volatility with ETFs such as:
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 (SYM: 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.
