Three Top Ways to Trade Cooling Economic Fear

On hopes a coronavirus rescue bill is close, markets are exploding higher.

At the moment, Dow futures are up 930 points.  S&P 500 futures are up 110, with NASDAQ futures showing a gain of 350 points.  There’s hope this can hold after days of madness.

Senator Chuck Schumer and Treasury Secretary Steven Mnuchin said they hope to have a deal by this morning.  “There are still a few little differences. Neither of us think they are in any way going to get in the way of a final agreement,” Schumer said, as quoted by CNBC.

Right now, the Democrats have two main issues they want to get through.  Schumer added that the Democrats’ “two main issues: workers first and a ‘Marshall Plan’ for hospitals are very strongly in the bill.”

There’s hope this can get done.

However, with the Senate due to convene at 10am EST, no vote has been scheduled yet.  

Top 3 Ways to Trade Falling Volatility

If this rally is real, and can sustain itself, we could see decreased volatility.

Some of the best ways to trade falling volatility is with the following opportunities.

ProShares Short VIX Short-Term Futures ETF (SVXY)

ProShares Short VIX Short-Term Futures ETF provides short exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration, according to Pro Shares.

VelocityShares Daily Inverse VIX Medium-Term (ZIV)

The ETN seeks returns that are -1x the returns of the S&P 500 VIX Mid-Term Futures Index ER for a single day, says VelocityShares.

iPath Barclays Inverse S&P 500 VIX Short-Term Futures ETN (XXV)

The Index offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects market participants’ views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index.