Email of the day
Comment of the Day

August 22 2013

Commentary by David Fuller

Email of the day

On volatility
"In today's comment on the Hindenburg Omen, you wrote:

"There are plenty of reasons for expecting a period of market turbulence, as Fullermoney has been discussing for several months, not least in the Audio. However, I do not think it will be anything like 2008."

"Should we therefore invest in the Volatility instruments?"

David Fuller's view Thanks for an interesting question. If you mean the VIX Index (weekly & daily), there could be some trading opportunities on a buy-low-sell-high basis. However, it is not easy and you would either need to watch it very closely or if long, place your sell order above the market because upside spikes often occur on a now-you-see-it, now-you-don't basis.

What I had in mind and probably also mentioned, was a more general strategy of only purchasing equities after shakeouts and lightening positions on rallies.

Back to top