VXX (iPath Series B S&P 500 VIX Short-Term Futures)

Jun 14, 2022Trade Ideas

There’s a good deal of fear out there.

Traders are panicking. Stocks are plunging. Fears of recession are mounting. Cryptocurrencies have plummeted. And the world’s richest folks just lost $1.4 trillion.

“The 500 wealthiest people in the world have lost a combined $1.4 trillion this year, including $206 billion on Monday alone, according to the Bloomberg Billionaires Index, as global financial markets buckle under the weight of higher interest rates and inflation anxiety,” says NDTV.

All thanks to inflation and the Federal Reserve, which could raise interest rates by 0.75% this week. Worse, the Dow just broke below support at 30,365. From here, there’s no support until the Dow reaches 29,856.

While we’re going to stay on the sidelines today to see what could possibly happen next, don’t panic. When we panic, many of us trade irrationally. We sell everything, and forget markets are resilient even in times of absolute chaos.

At the moment, if you’re itching to trade something, consider the volatility ETFs.

We mentioned the UVXY just yesterday, but there’s also the VXX and the VIXY. Both typically push higher with the Volatility Index (VIX).

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