Trial DataTrek Morning Briefings for Free

Thousands of investors and financial journalists rely on Nick and Jessica’s newsletter every day for their thought-provoking work on markets, data and disruption. See why for yourself by starting a 2-week FREE trial below.


Reuters: “Be like a scout and make that volatility plan”

By admin_45 in IN THE NEWS Reuters: “Be like a scout and make that volatility plan”

Excerpt from Reuters quoting DataTrek co-founder Nick Colas:

.... "Co-founder Nicholas Colas is watching for a one-day S&P 500 decline of 3% or more - unheard of in 2019 or early 2020, of course until Feb. 24th’s 3.4% drop.

Colas saw that as a sell signal, because along with the benchmark's move the CBOE volatility index (.VIX) closed at 25 - statistically too low. So far in 2021 we've had no 3+% down days.

Colas suggests buying on 3% down day ONLY if the VIX closes well above 44 that day, or preferably above 52.

If the VIX isn't at those levels Colas says: "it's better to be a seller on such a day than a buyer."

"Even if you don’t like this approach, consider developing a game plan for if markets get truly choppy," he says"....

Read the full article here on Reuters!

Trial DataTrek Morning Briefings for Free

Thousands of investors and financial journalists rely on Nick and Jessica’s newsletter every day for their thought-provoking work on markets, data and disruption. See why for yourself by starting a 2-week FREE trial below.