VIX, Wall Street's so-called 'fear gauge' fell to its historical low range while market is riding its bullish trend. The index is based on options contracts on the S&P 30-days in the future, thus can be interpreted as market perception on market volatility. Market panicking selling moment used to coincide with spike up in VIX, thus it is widely used as one hedging tool to protect investor's stock portfolio. While DOW Jones is hovering around historical peak now, investor could position by buying VIX ETF. Handsome return could be awarded on next fear cycle, which could be triggered by any event, such as military conflicts in region, unfavorable policy from US government, unexpectedly poor economic data, etc.
VIX ETF ticker: UVXY (US: NYSE)
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan).
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