Stocks, especially commodities were hammered today as the US bounced back and the risk trades were taken off. The gold and silver rally has come to a quick halt after the recent runup. Is it time to "sell in May and go away"? When times are uncertain and investors become too complacent, pull backs happen fast. As a hedge, one can pick up VXX, being long volatility is a good way to hedge long equity positions. The iPath S&P 500 VIX Short-Term Futures (VXX) maintains a rolling long position in the first and second month VIX futures contracts. I've noticed that when the VIX gets to these low levels, its time to start taking some profits off your long positions, hegding, raising cash, or looking for short positions.
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