Late last week, we noted the Dow Jones was technically overbought at double top resistance. We also noted its was over-extended on RSI, MACD, and Williams’ %R. So, we mentioned picking up the ProShares VIX Short-Term Futures ETF (UVXY), which traded at $9. In pre-market today, the UVXY is up to $9.93 and could see higher highs. All as fear makes a big return ahead of the Federal Reserve’s Jackson Hole Symposium this week.
With futures deep in the red again today, and with further downside likely, investors may want to continue betting on higher volatility. In addition to the UVXY, another great way to do that is with the ProShares VIX Mid-Term Futures ETF (VIXM), which last traded at $32.83. From here, we’d like to see it challenge resistance around $33.50.
The VIXM ETF “provides long exposure to the S&P 500 VIX Mid-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of five months to expiration. Intended for short-term use; investors should actively manage and monitor their investments, as frequently as daily,” explains ProShares.com.