Morning Brief – March 4, 2022

By Editor•

Fear is on the run.

The market fear gauge is now at 33.  Oil prices are above $110.  Inflation is through the roof.  Russia won’t leave Ukraine alone.  While markets are in disaster mode, don’t exit the market.  Remember, markets are resilient.  

 Even after the worst of times, markets have bounced back beautifully.

 If you want to hedge for further potential downside, consider these ETFs and ETNs.

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. The UVXY last traded at $18.64, and could test $26 if the Russia-Ukraine situation gets even worse

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

The VXX ETN provides exposure to the S&P 500 VIX Short-Term Futures Index.  The VXX last traded at $25.11, and could test $31, worst case.

 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.  The VIXY is now up to $20.50 and could test $25, should volatility explode higher.

 

Markets

  • The Dow is down 185 points to 33,553
  • The S&P 500 is down 22 points to 4,338.25
  • The NASDAQ is down 52 points to 13,979.25
  • Gold prices are up $7.63 to $1,944.31
  • Bitcoin is down 3.6% to $41,676.59
  • Oil prices are up another $2.54 to $110.20
  • The VIX is up another 2.56 points to 33.30

Trading Tips

Pay close attention to the artificial intelligence boom.

With it, we could be looking at a potential $641.3 billion opportunity.

According to Verified Market Research, the Global Artificial Intelligence Market size was valued at $51.08 billion in 2020 and could hit $641.3 billion by 2028, growing at a CAGR of 36.1% from 2021 to 2028. AI could revolutionize every industry from consumer products and transportation to healthcare and manufacturing, as corporate America races to embrace machine learning, deep learning and other processes that allow computers to perform tasks that generally require human intelligence.

 Read more here.

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