Morning Brief – March 7, 2022

By Editor•

Don’t panic.

Sure, the market has been a disaster.  

The Dow is down another 254 points, as the NASDAQ slips 106 this morning.  Oil prices are up another $4.40.  Investors are jumping ship.  But remember, the last thing you want to do is exit the market.  Markets are resilient.  They’ve bounced back from worse news.

Right now, the only certainty is uncertainty – which could lead to higher volatility.

To potentially profit from that, investors can always use the volatility ETFs and ETNs we mentioned on Friday.  That included:

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 was up $1.21 on Friday.  With the VIX pushing higher, the UVXY ETF should follow. 

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 ETN was up $1.09 on Friday, and is up another 78 cents in pre-market.

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 ETF was up 85 cents on Friday.  It’s up another 72 cents in pre-market.

Remember, even when markets become chaotic, don’t run.  There’s always an opportunity to make money even in a crazed market.

 

Markets

  • The Dow is down 254 points to 33,333
  • The S&P 500 is down 29 points to 4,298.25
  • The NASDAQ is down 106 points to 13,725
  • Gold prices are up another $8.06 to $1,980.37
  • Bitcoin is down slightly to $38,707.61
  • Oil prices are up another $4.35 to $120
  • The VIX is up another 3.61 points to 34.09

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.

One of the stocks booming with AI is AI-application software company… Read more here.

Insider Buying: APA Corp. (APA)

Even with the stock at multi-year higher, director Chansso Joung bought 40,000 shares for $1.3 million.  “My recent share purchase is tied to my confidence in APA’s strategy,” Joung said, as quoted by Barron’s. “Over the past year, the company accomplished several key financial and operational objectives including generating robust cash flow, strengthening the balance sheet and achieving aggressive ESG goals. My belief is that APA is well positioned for future success.” 

From a current price of $39.48, APA could see $45, near-term.  APA also declared a regular cash dividend. The dividend is payable May 23, 2022, to stockholders of record on April 22, 2022, at a rate of 12.5 cents per share on the corporation’s common stock.

 

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