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Rep. Alexandria Ocasio-Cortez would ‘destroy America’ as president – but is a first-rate entrepreneur – says Canadian businessman and star of ABC’s ‘Shark Tank’ Kevin O’Leary.

O’Leary’s comments came over the weekend during the White House Correspondents’ Association annual dinner in response to questions about a new campaign-style video the far-left progressive lawmaker put out amid speculation she is considering a run for president.

‘I think she’s the best marketeer in politics. I buy her T-shirts, I gift them the tax the rich T-shirts – I love them. She makes 82% in margin on them, which, I think, shows you that inside of every socialist, there’s a capitalist trying to get out,’ O’Leary said. ‘Now, would she destroy America? Absolutely. There’s no chance she’ll ever be president. I don’t agree with anything she says, but I love her social media. She’s a crazy chicken.’ 

‘Her district is a wasteland,’ O’Leary added. ‘Why would anybody want her running anything? But I love what she does on T-shirts, so maybe she should start a T-shirt company.’

The ‘Shark Tank’ star’s comments came as Ocasio-Cortez has been criss-crossing the country over the last several weeks, participating in a ‘Fight Oligarchy’ tour alongside Sen. Bernie Sanders, I-Vt., in protest of President Donald Trump and his policies. The events have drawn large crowds and speculation over whether Ocasio-Cortez is testing the waters for a potential presidential run. 

Meanwhile, last week, Ocasio-Cortez posted a new campaign-style video to her social media accounts, invigorating that speculation even further.

 

Prominent pollster Nate Silver suggested earlier this month that Ocasio-Cortez is currently the leading Democrat to pick up the party’s presidential nomination in 2028, selecting her as his top choice in a 2028 election exercise with FiveThirtyEight’s Galen Druke. 

‘I think there’s a lot of points in her favor at this very moment,’ Druke said, adding, ‘Alexandria Ocasio-Cortez has broad appeal across the Democratic Party.’

Fox News Digital’s Deirdre Heavey and Paul Steinhauser contributed to this report.

This post appeared first on FOX NEWS

Former vice presidential nominee Gov. Tim Walz, D-Minn., continued a self-described ‘listening tour’ across the country at a Harvard Kennedy School forum on Monday night, ruling out a 2028 presidential bid and revealing why former Vice President Kamala Harris chose him as her running mate. 

Walz said Harris chose him, in part, because, ‘I could code talk to White guys watching football, fixing their truck’ and ‘put them at ease.’ The Minnesota governor described himself as the ‘permission structure’ for White men from rural America to vote for Democrats. 

‘I think I’ll give you pretty good stuff, but I’ll also give you 10% problematic,’ Walz added when pushed by moderator Brittany Shepherd, ABC News national political reporter, about why he didn’t take that message to cable news to reach a larger audience. Walz laughed off criticism over inconsistencies in his background on the 2024 campaign trail, describing himself as a ‘knucklehead.’

Walz told CNN’s Jake Tapper earlier this month that he was considering a third bid for Minnesota governor but was not thinking about running for president in 2028. When asked by Shepherd to explain, Walz said the Democratic Party should run a collective 2028 presidential campaign. 

‘I think we need to collectively run a presidential campaign without a candidate right now that builds all the infrastructure… by the time we get to 2028, we’re ready,’ Walz said. 

And on what he would have done differently in 2024, Walz said, ‘We would have won.’ Acknowledging that Democrats came up short in November, Walz said the party is ‘better off doing more’ in ‘every forum,’ following criticism that Democrats didn’t prioritize media appearances enough in 2024, whether long-form podcasts or traditional network news shows. 

‘There is room for Gavin Newsom’s podcast, and there is room for Bernie Sanders’ rallies,’ Walz said, as he described both instances as opportunities for Democrats to reclaim their own narrative.

Gov. Gavin Newsom, D-Calif., long considered a potential 2028 presidential candidate, has invited President Donald Trump’s allies and conservative guests, including Charlie Kirk and Steve Bannon, onto his new podcast to show he is open to ‘criticism and debate without demeaning or dehumanizing one another.’ The strategy follows criticism after the 2024 presidential election that Democrats didn’t prioritize new media appearances and unscripted conversations enough. 

Meanwhile, Sen. Bernie Sanders, I-Vt., has been jet-setting across the country on the ‘Fighting Oligarchy’ tour alongside another potential 2028 presidential candidate, Rep. Alexandria Ocasio-Cortez, D-N.Y. The self-described Democratic socialists have amassed tens of thousands of supporters to what they say are record-setting rallies for both politicians. 

Walz has been on his own cross-country tour, hosting town halls in Republican-held congressional districts. But the former vice presidential nominee has fallen into familiar missteps from the 2024 campaign trail – on the road and back at home. 

Walz was heckled by veterans at the Minnesota Capitol earlier this month for claims of ‘stolen valor.’ At a town hall in Wisconsin last month, a woman who registered for the event told Fox News Digital she was removed for filming Trump supporters getting kicked out. And during one of his first town hall events, Walz was slammed by Republicans for celebrating Tesla’s stock drop amid a spree of vandalism. 

While the Democrat said he was chosen by the Harris campaign to relate to White men, Walz has been unable to escape the nickname ‘Tampon Tim,’ coined by conservatives for his bill providing free menstrual products to ‘all menstruating students’ in school restrooms grades 4 to 12, including the boys’ room. 

Regardless of the comment or legislation, conservatives find a way to criticize ‘Tampon Tim,’ including when Walz claimed he could fight most Trump supporters earlier this year. 

Further reflecting on the Democrats’ 2024 losses, Walz said the party wins on the issues and ‘competency,’ but ‘we lose the message, and we lose power.’

‘Why have we lost the self-identity that the Democratic Party is for personal freedoms, middle-class folks, for labor folks. How did we lose it, where people didn’t self-identify with that? How did we get to a point where people didn’t feel like this was an important enough election to get out and vote?’ Walz asked during his speech Monday. 

Walz’s speech was on the eve of Trump’s first 100-day celebration, and he warned his fellow Democrats, ‘If you leave a void, Donald Trump will fill it,’ and added, ‘If I ever had 100 days to live, I would spend it in the Trump administration because it’s like a lifetime.’

‘It’s been 100 days of destruction. You think we can survive 550 more? That’s the challenge. That’s how long it is until the midterms,’ Walz said. 

This post appeared first on FOX NEWS

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There are moments when I still wake up in terror, my heart pounding, convinced I’m back in those dark tunnels beneath Gaza. 

Then reality slowly breaks through—I am free. After 471 days held hostage by Hamas, I have returned to the world of light, of family, of possibility. But my heart remains heavy, knowing that others still endure the nightmare from which I’ve awakened.

My story begins on October 7, a day that tore my life in two. I went to the Nova festival with my best friend Gaya Halifa, looking forward to a day of music and celebration. When the terror attack began, we tried desperately to escape. After hiding in the bushes, Ben Shimoni arrived in his car to rescue me, Gaya and Ofir Tzarfati. 

For a brief moment, we thought we were safe. But that hope shattered when the terrorists opened fire on our car. I was wounded. Gaya did not survive. I remember her last words to me: ‘Romi, they shot me.’ We shared one final look, her eyes meeting mine before they rolled back as she took her last breath. In the end, I was the only survivor from our car. Since returning home, I’ve learned that Ben managed to save twelve other people at the festival that day before coming back to rescue us—a heroic act for which I am eternally grateful.

Every day in captivity tested every fiber of my being. I lost 22 pounds as food and water became luxuries rather than necessities. The bullet wound in my hand, untreated and without pain medication, led to complete disability in my right hand. Yet somehow, I endured. In captivity, I found an unexpected lifeline—Emily Damari. We first met after undergoing horrific surgeries in Gaza, waking up in a hospital after anesthesia. Thirty-nine days later, we reunited in the tunnels and remained inseparable. Two injured girls, two functioning hands between us, two bleeding souls becoming one.

She was my light when hope abandoned me. When I collapsed to the floor, she lifted me with a smile. When I cried so hard I couldn’t breathe, she wiped away my tears. When I yearned for my mother, she held me tightly and didn’t let go. We fought together to survive, and on January 19, we were both released.

I am incredibly grateful for getting my life back. I owe so much to you, President Trump, for your decisive leadership in advancing a deal that many thought impossible. When I returned, I learned how you promised from your first day in office that you would bring all the hostages back. Your commitment created the breakthrough that led to my release along with 37 other hostages. You achieved what many diplomats and leaders deemed impossible. Your intervention made this possible, and I look forward to meeting you face-to-face to express my profound gratitude. I believe you will finish what you’ve started.

I also thank the brave soldiers of the Israel Defense Forces who risked their lives. I thank my family who, like the families of all the hostages, fought tirelessly, traveled across continents and refused to let the world forget me and all the hostages. Their unwavering advocacy and determination to bring me home sustained them through their darkest hours, just as thoughts of them sustained me through mine.

Since my return, the journey has been far from over. I’ve been hospitalized, undergoing a 13-hour surgery. I never imagined my condition would be so severe. I didn’t anticipate that my leg would lose function as they harvested everything possible to repair my hand. I never expected to need rehabilitation for months ahead or that I would face multiple surgeries instead of just one. The rehabilitation is incredibly difficult, both physically and mentally. But I will face it all—this is what I waited for during those endless days of captivity.

As I navigate this new chapter of healing and hope, I carry with me the memory of those dark days and the people who sustained me through them. I carry the responsibility to speak for those who cannot yet speak for themselves—the hostages still waiting for their freedom.

It feels especially meaningful to mark the first 100 days of Trump’s presidency near Israel’s Independence Day. But true independence cannot exist when our people are still held captive. Every living hostage deserves the chance to breathe free air and reunite with loved ones, while those who have perished deserve to be returned to their families for proper burial and remembrance.

My story is not just one of survival but of the enduring human capacity for resilience. It is about finding light in the darkest places and strength when all seems lost. It is about the bonds that save us and the hope that sustains us.

My journey—and Israel’s journey—isn’t complete until every hostage returns home. I believe in us. I believe in you, President Trump. Let’s bring them all home.

This post appeared first on FOX NEWS

Pfizer CEO Albert Bourla on Tuesday said uncertainty around President Donald Trump’s planned pharmaceutical tariffs is deterring the company from further investing in U.S. manufacturing and research and development. 

Bourla’s remarks on the company’s first-quarter earnings call came in response to a question about what Pfizer wants to see from tariff negotiations that would push the company to increase investments in the U.S. It comes as drugmakers brace for Trump’s levies on pharmaceuticals imported into the country — his administration’s bid to boost domestic manufacturing.

“If I know that there will not be tariffs … then there are tremendous investments that can happen in this country, both in R&D and manufacturing,” Bourla said on the call, adding that the company is also hoping for “certainty.”

“In periods of uncertainty, everybody is controlling their cost as we are doing, and then is very frugal with their investment, as we are doing, so that we are prepared for remit. So that’s what I want to see,” Bourla said.

Bourla noted the tax environment, which had previously pushed manufacturing abroad, has “significantly changed now” with the establishment of a global minimum tax of around 15%. He said that shift hasn’t necessarily made the U.S. more attractive, saying “it’s not as good” to invest here without additional incentives or clarity around tariffs.

“Now [Trump] I’m sure — and I know because I talked to him — that he would like to see even a reduction in the current tax regime particularly for locally produced goods,” Bourla said, adding a further decrease would be would be a strong incentive for manufacturing in the U.S.

Unlike other companies grappling with evolving trade policy, Pfizer did not revise its full-year outlook on Tuesday. However, the company noted in its earnings release that the guidance “does not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time.”

But on the earnings call on Tuesday, Pfizer executives said the guidance does reflect $150 million in costs from Trump’s existing tariffs.

“Included in our guidance that we didn’t really speak about is there are some tariffs in place today,” Pfizer CFO Dave Denton said on the call.

“We are contemplating that within our guidance range and we continue to again trend to the top end of our guidance range even with those costs to be incurred this year,” he said.

This post appeared first on NBC NEWS

JetBlue Airways is getting ready to announce a partnership with another U.S. airline with a larger network in the coming weeks, the carrier’s president said Tuesday. One possibility: United Airlines.

JetBlue’s leaders have repeatedly said they need a partnership to better compete against larger airlines like Delta Air Lines and United.

JetBlue’s planned acquisition of Spirit Airlines was blocked by the Justice Department last year, while its partnership in the Northeast with American Airlines unraveled after the carriers lost an antitrust lawsuit in 2023.

The New York airline has been in talks with several carriers this year about a partnership. JetBlue’s president, Marty St. George, said on an earnings call on Tuesday that the company expects to make an announcement this quarter. He emphasized that the partner’s bigger network would allow customers to earn and burn loyalty points on JetBlue.

“If you are a customer in the Northeast and you love JetBlue for leisure, but twice a year you have to go to Omaha or Boise, these are places that you can’t earn TrueBlue points on now and when this partnership goes forward, you will be able to,” St. George said.

United Airlines could possibly get a foothold (again) into JetBlue’s home hub of John F. Kennedy International Airport in New York through the partnership. “We don’t engage in industry speculation,” a United Airlines spokeswoman said.

An Alaska Airlines spokeswoman said the carrier doesn’t have plans to partner with JetBlue and is focused on its recent merger with Hawaiian Airlines.

Southwest Airlines declined to comment. A Delta Air Lines spokesman said there was no pending announcement from the carrier about a partnership with another airline.

JetBlue declined to comment further.

American had been in talks to revive a different version of its partnership with JetBlue, but those failed and American said Monday that it sued JetBlue.

“Ultimately, we were unable to agree on a construct that preserved the benefits of the partnership we envisioned, made sense operationally or financially,” American Airlines Vice Chair Steve Johnson said in a letter to employees on Monday.

This post appeared first on NBC NEWS

Real Estate and Healthcare Swapping Positions in Top 5

The top five sectors show remarkable stability, with Consumer Staples, Utilities, Financials, and Communication Services holding steady in the top four positions. The only change is Real Estate replacing Health Care, a shift that underscores the ongoing defensive tilt in the market. In the bottom half of the ranking, Materials and Consumer Discretionary swapped positions.

  1. (1) Consumer Staples – (XLP)
  2. (2) Utilities – (XLU)
  3. (3) Financials – (XLF)
  4. (4) Communication Services – (XLC)
  5. (6) Real-Estate – (XLRE)*
  6. (5) Healthcare – (XLV)*
  7. (7) Industrials – (XLI)
  8. (9) Materials – (XLB)*
  9. (8) Consumer Discretionary – (XLY)*
  10. (10) Energy – (XLE)
  11. (11) Technology – (XLK)

Weekly RRG

Looking at the weekly Relative Rotation Graph (RRG), we observe ongoing strength in Consumer Staples and Utilities. Both sectors are advancing further into the leading quadrant and continue to gain on the RS ratio axis.

Real Estate is also making a notable move deeper into the leading quadrant. Financials and Communication Services are positioned on the brink of the weakening quadrant. However, they are still sustaining elevated RS ratio levels, which keeps them securely in the top five — at least for now.

Daily RRG

  • Consumer Staples and Utilities: Both reside within the weakening quadrant, but at high RS ratio levels. This combination, along with their strength on the weekly RRG, keeps them well inside the top five.
  • Communication Services: Moved into the lagging quadrant but with a very short tail close to the benchmark. This positioning allows it to remain in the top five — for now.
  • Financials: Similar to Communication Services, close to the benchmark with a slightly longer tail but not showing significant loss of relative strength.
  • Real Estate: Made a significant move, pushing into the leading quadrant on the daily RRG, combining with its strong weekly tail to secure its spot in the top five.

Consumer Staples

The Consumer Staples sector remains range-bound on the weekly chart, causing relative strength to stabilize. With RRG lines at high levels, we might see some consolidation in the coming week — definitely something to keep an eye on.

Financials

Financials are picking up steam again, closing in the upper half of last week’s bar. This price strength is helping the relative strength line remain well within its rising channel. If the sector can maintain this momentum, it’s likely to stay among the top performers.

Utilities

Utilities are trading within their sideways channel, continuing to push relative strength against (or just above) resistance. This strength is keeping the RRG lines above 100. However, imho, we’ll need to see more relative strength in the coming weeks to keep Utilities at the top of the list.

Communication Services

Communication Services had a strong week, closing at the top of its range against former support, now acting as resistance. Based on the price chart, we might expect some resistance and difficulty for the sector to move higher this week. Despite this, the relative strength line remains within its rising channel, albeit losing some relative momentum at high RS ratio levels — not concerning at this time.

Real Estate

Real Estate — the new entrant in the top five — is benefiting from a strong bounce off the $36 low two weeks ago. It’s now starting to push relative strength higher, although not yet extremely strong. The RS momentum line is beginning to roll over while dragging the RS ratio higher.

For now, the combination of daily and weekly relative strength has been enough to displace Health Care and secure Real Estate’s spot in the top five.

Portfolio Performance

The defensive positioning of our portfolio has put a dent in performance relative to the broader market. We’re now trailing the S&P 500 by almost 3%. However, we’ve seen over the past few weeks that these differences can equalize rapidly when the market moves in the direction of the portfolio. So, I’m not too concerned at the moment — it’s all part of the ebb and flow of market dynamics.

#StayAlert and have a great week –Julius


Today, Carl and Erin made a big announcement! They are retiring at the end of June so today was the last free DecisionPoint Trading Room. It has been our pleasure educating you over the years and your participation in the trading room has been fantastic! Be sure and sign up to follow the DecisionPoint Blog on StockCharts.com where we do plan to publish articles periodically. (Subscribers: you will be notified via email as to how your subscription will be handled. Stay tuned.)

After the big announcement, Carl opened the show with the DP Signal Tables to give us a sense as to the market’s overall trend and condition.

Carl then went through his regular market overview that included Bitcoin, Bonds, Yields, Crude Oil, Gold, Gold Miners and the Dollar.

Once finished with the market overview, Carl walked us through the Magnificent Seven in the short and intermediate terms by looking at both the daily and weekly charts.

The pair took questions including a discussion on relative strength using the Silver Cross Index and Golden Cross Index.

Erin took the controls and went through the 26 indexes, sectors and industry groups that have under the hood indicators. She walked us through the CandleGlance and explained her findings along the way.

Questions popped up again with Carl discussing his strategy of using dividend paying stocks in retirement. He mentioned the Dividend Aristocrats and Dividend Kings lists as a great source to find good dividends. Also a shout out to The Bahnsen Group ETF (TBG).

Erin finished by looking at viewer symbol requests.

It has been a great run learning and teaching about technical analysis. Thank you again for your support over the years!

01:10 DP Signal Tables

03:48 Market Overview

16:18 Magnificent Seven

22:53 Questions (Relative Strength with Silver Cross and Golden Cross Indexes)

29:18 Sector Rotation and Market CandleGlance

34:57 Question regarding dividend paying stocks

39:51 Symbol Requests


Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin


(c) Copyright 2025 DecisionPoint.com


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.


Helpful DecisionPoint Links:

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules


As data breaches and cyberattacks rise, cybersecurity exchange-traded funds (ETFs) are gaining traction.

The term cybersecurity originated in 1989, and today is defined as the measures taken to protect a computer or computer system against unauthorized access or cyberattack threats. These measures can include people, policies and processes.

The number of security incidents is increasing every year, as are the costs companies must pay. In fact, according to a 2024 research report from IBM (NYSE:IBM), the average cost of a single data breach event globally was US$4.48 million — up 10 percent over the previous year and the highest cost in the 19 years since the first report was issued.

These threats are unlikely to fade anytime soon. The forecast for the cybersecurity market is strong through 2030, with trends in the space including the threats posed by AI and quantum computing.

There are multiple ways to invest in the cybersecurity market, including cybersecurity ETFs, which offer a low-cost way to enter the space. ETF fees and expenses are typically lower than those associated with mutual funds or other types of actively managed financial instruments. What’s more, ETFs provide exposure to a basket of stocks, meaning investors can spread their risk around.

According to ETF.com, there are nine cybersecurity ETFs listed in the US. Here’s a closer look at the top four cybersecurity ETFs by assets under management (AUM). ETFs with assets under management above US$500 million are included in this list. All numbers and figures were current as of April 28, 2025.

1. First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR)

AUM: US$8.00 billion
Expense ratio: 0.59 percent

Launched in July 2015, this ETF tracks the NASDAQ CTA Cybersecurity Index (INDEXNASDAQ:NQCYBR) and includes companies categorized by the Consumer Technology Association as cybersecurity. The ETF’s 33 holdings are largely tech firms, but it also offers some exposure to the defense and aerospace sectors.

The First Trust NASDAQ Cybersecurity ETF’s top holdings include CrowdStrike Holdings (NASDAQ:CRWD) at a weight of 8.79 percent, Broadcom (NASDAQ:AVGO) at 7.78 percent, Palo Alto Networks (NYSE:PANW) at 7.58 percent and Cisco Systems (NASDAQ:CSCO) at 7.13 percent. Infosys (NYSE:INFY)

2. Amplify Cybersecurity ETF (ARCA:HACK)

AUM: US$1.89 billion
Expense ratio: 0.6 percent

The oldest cybersecurity ETF on this list is the Amplify Cybersecurity ETF. Previously called ETFMG Prime Cyber Security ETF, this ETF began trading in November 2014 and tracks the ISE Cyber Security Index (INDEXNASDAQ:HXR). HACK is run by ETFMG, a lesser-known company among the goliath ETF managers, and it has had a 12.19 percent annualized return over the past five years.

The cybersecurity ETF has 25 holdings, and its top holdings by weight include Broadcom at 8.67 percent, CrowdStrike Holdings at 6.84 percent and Cisco Systems at 6.25 percent.

3. Global X Cybersecurity ETF (NASDAQ:BUG)

AUM: US$986.89 million
Expense ratio: 0.51 percent

The newest ETF on this list is the Global X Cybersecurity ETF, which was founded in October 2019. The ETF tracks a market-cap-weighted global index of companies selected based on revenue related to cybersecurity activities, as companies must generate at least 50 percent of their revenue from cybersecurity to be included.

The ETF has 23 holdings, with the top by weight being CrowdStrike at a weight of 7.8 percent, Fortinet (NASDAQ:FTNT) at a weight of 7.06 percent, Zscaler (NASDAQ:ZS) at 6.51 percent and Check Point Software Technologies (NASDAQ:CHKP) at 6.5 percent.

4. iShares Cybersecurity and Tech ETF (ARCA:IHAK)

AUM: US$909.79 million
Expense ratio: 0.47 percent

Last on this cybersecurity ETFs list is the iShares Cybersecurity and Tech ETF. Founded in June 2019, it tracks the NYSE FactSet Global Cyber Security Index (INDEXNYSEGIS:NYFSSEC) and has a focus on developed and emerging markets in the cybersecurity industry.

The iShares Cybersecurity and Tech ETF has 37 holdings, including Trend Micro Incorporated (TSE:4704) at a weight of 5.23 percent, Okta (NASDAQ:OKTA) at 5.1 percent, Crowdstrike Holdings at 4.82 and Check Point Software Technologies at 4.75 percent.

Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.

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Buy low, sell high. The trend is your friend. Sell in May and go away. Wall Street is teeming with familiar financial adages. But there’s one you may not have heard of: “When the VIX is high, it’s time to buy.”

Similar to “buy the dip,” the idea is that when the level of fear in the markets has reached its peak, it’s the perfect time to buy because stocks are most likely trading at deep discounts. To quote famed investor Warren Buffet of Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B), “Be fearful when others are greedy, and greedy when others are fearful.”

In this article

    What is the VIX?

    VIX is shorthand for the Volatility Index (INDEXCBOE:VIX) of the Chicago Board Options Exchange (CBOE). Since 1993, the VIX has tracked real-time price changes of near-term S&P 500 (INDEXSP:.INX) options.

    Options are financial contracts that give holders the right to buy or sell an underlying asset — stocks, bonds, exchange-traded funds, contracts, etc. — at a certain price within a certain time period. Options prices for particular stocks are determined by the probability that the stock’s price will reach a certain level, known as the strike price or exercise price.

    The VIX tracks the S&P 500 as opposed to other indexes because it is considered the leading indicator of future volatility in the overall US stock market.

    For many knowledgeable investors, the VIX is a globally recognized go-to benchmark index for measuring the expectation of volatility in the stock market over the next 30 days based on how wide or narrow the swing in prices is for S&P 500 options.

    Why does the VIX go up when the market goes down?

    The VIX has an inverse relationship with the S&P 500, meaning that spikes in the VIX typically occur when stock prices drop.

    The more pronounced the options price swings on the S&P 500, the higher the risk of stock market volatility and the higher the VIX climbs — a signal that a crash may be imminent. On the flip side, a significant drop in the VIX could herald a rally.

    It’s important to note that the VIX is not a crystal ball, but rather a real-time snapshot of how investors are feeling about the level of near-term volatility in the market. Is the current sentiment negative or positive? Confident or fearful?

    “Volatility, or how fast prices change, is often seen as a way to gauge market sentiment, and in particular the degree of fear among market participants,” explains Investopedia. Hence why the VIX is also referred to as the “fear index.”

    Investors can use the VIX to measure the level of fear in the market and employ this information when making investment decisions. The higher the VIX level, the more likely the possibility that fear and uncertainty is driving the markets.

    What is a normal range for the VIX?

    The normal range for the VIX is values ranging between 12 and 20. Forbes advises investors that when the VIX is below a value of 20, that is reflective of a stable investment environment. A VIX value of 12 or lower is indicative of high optimism in the stock market — the mark of extremely bullish investor sentiment.

    Once VIX values rise above 20, the market is said to be experiencing “abnormally high volatility.” Once the VIX is seen pushing above 30, that’s a clear sign of a bear market — when investors fear there is too much uncertainty and risk in the stock market.

    In fact, five of the 10 highest VIX values since the index launched in 1993 occurred in the lead up to the 2008 financial crisis, while the remaining five are associated with the COVID-19-induced stock market crash in 2020.

    The VIX hit an all-time high of 82.69 on March 16, 2020, during the early days of the COVID-19 pandemic. The index’s second highest value, 80.86, was reached on November 20, 2008, as markets reeled from the fallout over mortgage-backed securities.

    What is the all-time highest recorded spike in the VIX index?

    The VIX recorded a record high spike on August 5, 2024, when it jumped 42 points to 65.73 intraday as markets around the world experienced sell offs and recession fears rose. This also marked the highest point of the VIX index since the COVID-19 pandemic.

    The VIX moved down to close at 38.56 by the end of the day, still quite high but well below the top 10 closes discussed above.

    Can you invest in the VIX?

    While you can’t invest directly into the VIX, there are a number of exchange-traded products (ETPs), such as futures contracts, options contracts and ETFs, that are based on the future anticipated value of the index.

    These are three VIX-associated ETPs available to investors:

          If investors are able to get the timing right, VIX futures ETFs can be a hedge against a market crash. However, the opportunities inherent in VIX ETPs don’t negate the fact that they do carry significant risk, and are not for those with a longer-term investment strategy or low risk tolerance.

          Analysts at ETF.com warn that these products “deliver poor long-term exposure to the VIX index … (and) have a history of erasing vast sums of investor capital over holdings periods as short as a few days.”

          In other words, VIX ETPs have a tendency to suffer from contango, which is when a futures price is higher than the current price. If held for too long a period, they lose their value, making them an unsuitable permanent hedge against market volatility.

          Investors with high risk tolerance and a knack for playing the short game can also buy VIX call options as a potential hedge against stock market downturns. But once again, as Investopedia cautions, it’s important to time the market right. Buying in the middle of a market crash can lead to oversized losses.

          Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article

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