Chaos is exploding. Futures are plunging.
Fires are raging across the west coast. There’s still no vaccine for the coronavirus. Lawmakers remain deadlocked over another round of stimulus, And, now with weeks to go before the U.S. elections, the Supreme Court’s Ruth Bader Ginsburg passed away, creating a fiery war of words between both parties over who will fill her seat.
Technically, the major indices are breaking below their 50-day moving average, including the S&P 500 and the tech-heavy NASDAQ. Uncertainty over what could possibly happen next is sure to fuel even more volatility – especially as we get closer to the elections.
One of the best ways to prepare for even more chaos is to bet on higher volatility. We can do that with the Pro Shares Ultra VIX Short-Term Futures ETF (UVXY), which typically runs higher along with the VIX, or the market’s fear gauge.