|Bid||13.60 x 21500|
|Ask||13.61 x 1200|
|Day's Range||13.51 - 14.10|
|52 Week Range||11.30 - 23.70|
|PE Ratio (TTM)||N/A|
|YTD Daily Total Return||-1.25%|
|Beta (5Y Monthly)||-2.89|
|Expense Ratio (net)||1.08%|
The S&P 500 has not experienced a 1% or more move in either direction since mid-October, its six-longest streak on record since the end of 1969 and third-longest since the end of 1995, the Wall Street Journal reports. ETFs that track VIX futures allow investors to profit during rising volatility or hedge against short-term turns.
Exchange traded fund investors can also protect themselves against potential turns with alternative strategies as well. U.S. markets are rallying, but options traders have looked at the new high with caution, betting on the eventual misfortune of a S&P 500 pullback in the coming months, the Wall Street Journal reports. Emanuel underscored the high demand for stock protection for contracts expiring in a few months to a whole year from now, which has driven up the cost of bearish put options on the Cboe Skew Index, which measures expectations of extreme and unusual moves in the stock market, or so-called black swan events.
Leveraged ETFs use the futures markets to magnify the returns of a specific index. These ten leveraged ETFs are the most popular with investors.
The third quarter corporate earnings season is looking gloomy and could test a market that has already been rocked by weak economic data and ongoing trade risks. According to FactSet, a number of companies, such as Wynn Resorts Ltd., Macy’s Inc. and Tyson Foods Inc., are already trying to temper investors' expectations ahead of the coming earnings season, warning that Q3 results could be lower than analysts had expected, the Wall Street Journal reports. Wall Street analysts have been cutting back earnings expectations for all 11 sectors in the S&P 500 in recent months as well.
If there’s anytime to be a bear, that time could be now as the prospect of fewer rate cuts could mean more market downturns ahead, according to Blackstone chief investment strategist Joseph Zidle. Following the latest quarter-point rate cut by the Federal Reserve, the central bank offered no clear direction on whether more cuts could be ahead. “The markets are saying to the Fed, ‘Think globally.
Inverted yield curves and the U.S.-China trade war are fueling most of the investors’ worries, which could provide more fodder for a global economic slowdown. In 2018 and 2017, the S&P 500 has posted returns of 0.4% and 1.9%, respectively. In 2016, the S&P 500 posted a slight loss.
If history is any indication of what the market holds for us, September is likely to be a rough ride for stocks once again, with volatility rising as investor fears are broadening. August was a brutal month for markets, as stocks dropped precipitously from their all-time highs, beginning with six consecutive down days in the market, amid turmoil from a trade war with China, unsatisfying resolutions from the Federal Reserve, and global economic stability. While markets were eventually simply oversold from the precipitous six-day decline, China’s central bank pegged the yuan’s official reference point at more robust level than the key 7 yuan-to-the-dollar point, a move that assuaged the currency markets, which were at first terrified by fears that the U.S.-China trade war was devolving into a currency war.
Market maven Jim Paulsen is brimming with confidence that a breakout will occur before year's end. August's market doldrums are setting up for an equally tepid September, but it will create market opportunities for savvy investors. Just as President Donald Trump announced new tariffs and then scaled back on certain items on the list of Chinese products, the markets were sent on a volatility rollercoaster ride.
Trade wars will continue to play a hand in the latest market oscillations, but the recent pullbacks could present buy-the-dip opportunities for leveraged exchange-traded funds (ETFs). Just as U.S. President Donald Trump announced new tariffs and then scaled back on certain items on the list of Chinese products, the markets were sent on a volatility rollercoaster ride. Traders can take advantage of these markets movements in the S&P 500.
Trade wars and yield curves are certainly a two-headed dragon that’s been plaguing investors as of late, breathing a heavy fire of volatility all over the capital markets. Traders are betting that this volatility isn’t a temporary scourge and will continue. Traders have been quick to pile in on options contracts targeting the VIX volatility index.
Furthermore, a black swan event could be occurring in Hong Kong with the ongoing protests. In financial sector vernacular, a black swan is a major disruption that could obliterate the markets and economy. “That’s actually what I’m worried about the most right now, because every weekend we’ve got this drama where the people of Hong Kong are having protests in the millions and its starting to get very violent,” Eisman added.
Last week, the major indexes were turned inside out from volatility stemming from a Federal Reserve rate cut followed by U.S. President Donald Trump upping the ante on China with additional tariffs. This volatility comeback can certainly spark a market downturn that could give the Direxion Daily S&P 500 Bear 3X ETF (SPXS) a boost. Ahead of the latest market events, traders were placing big bets on market volatility to spike to heightened levels.
A majority of the capital market players are hoping that a Federal Reserve rate cut today will be enough to spark another rally for the S&P 500. The index reached an all-time high last Friday, pushing past the 3,000 mark , but the high-pitched sound of steam rushing through a small hole is what technical analysts at Morgan Stanley are hearing. In the past year and half, anytime the S&P 500 rallied close to or above this 3,000 mark , a market correction ensued.
Technology earnings will kick off this week and if the prescience of some analysts proves right, then weakness in second-quarter earnings could put a bearish spin on major indexes like the S&P 500. As such, traders can look to the Direxion Daily S&P 500 Bear 3X ETF (SPXS) for a leveraged inverse play. As investors anticipate a global economic slowdown, trade wars, and now weaker-than-expected earnings, it could be stoking the fire for more gains for bears.
As the earnings season begins, ETF investors should keep in mind that the upcoming quarterly results may come up short compared to what we have been accustomed to. If the estimate for a decline holds up, it would mark the first time the S&P 500 reported two straight quarters of year-over-year earnings declines in three years.
With the capital markets looking for a looming rate cut to boost U.S. equities sometime in 2019, a short-term play could be the forthcoming volatility ahead as Federal Reserve Chairman Jerome Powell testifies before congress this week to apprise lawmakers on the strength of the U.S. economy. As such, traders can take advantage of S&P 500 leveraged exchange-traded funds (ETFs) for short-term gains. Potential leveraged ETF plays in the Direxion Daily S&P500 Bull 3X ETF (SPXL) and the Direxion Daily S&P 500 Bear 3X ETF (SPXS) could have traders placing these ETFs on their watch lists.
According to data compiled by Bloomberg, over 80 percent of S&P 500 companies who revised their profit estimates are expecting weaker-than-expected earnings. “One of the things that investors seem to be overlooking is how poor the earnings environment is,” said David Spika, president of GuideStone Capital Management. As such, traders can look at plays like the Direxion Daily S&P 500 Bear 3X ETF (SPXS) . SPXS seeks daily investment results equal to 300 percent of the inverse of the daily performance of the S&P 500 Index.
With the majority of capital markets looking for a looming rate cut to boost U.S. equities sometime in 2019, it might not be as necessary for a rally as most might think, according to PNC Financial co-chief investment strategist Jeffrey Mills. If the bulls are wrong, of course, it also gives inverse ETF investors a chance to reap gains. SPXL seeks daily investment results of 300% of the daily performance of the S&P 500 Index.
The decade-old U.S. bull market has been threatened by renewed trade fight lately. Investors could ride out the downbeat sentiments through inverse or leveraged inverse ETFs as these products offer big gains in a short span.
Market maven and CNBC's "Mad Money" host Jim Cramer said the protracted U.S.-China trade war could result in negative ramifications for the stock market in the long-term horizon. Things just don’t feel right in this country.” On Wednesday, the Dow Jones Industrial Average fell over 200 points as investor fears of a prolonged U.S.-China trade war tamped own enthusiasm for the capital markets. Late last year, Cramer was already citing an important trade deal meeting between the U.S. and China as a prime factor in the health of the capital markets.