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Dr. Kris has two degrees from MIT because one just wasn't enough. Her life goal was to figure out the universe and having done that (at least to her satisfaction), she decided to tackle something even more difficult—the stock market. Applying the scientific method along with an insatiably... More
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  • Market Notes: Are The Bears Coming Out Of Hibernation? -- May 22 0 comments
    May 22, 2013 3:22 PM | about stocks: SDOW, SPXU, SPXS, SRTY, TZA, TOTS

    3pm ET: Market Alert!: The "Sell in May" scenario may be kicking in!
    Today's dramatic rise in the VIX and corresponding dramatic drop in the major averages lead by the DTX (a leader in market direction) could spell the end of the current rally. Long-term investors may wish to buy protective puts while traders should consider booking profits. Should the VIX close over 15, swing traders and bears may wish to initiate short positions or take positions in the levered bear etfs.

    Here are some of the more popular 3x levered bear funds along with current approximate share price and today's percentage gains: Short Dow30 (SDOW, $40, +0.5%); Short S&P500 (SPXU, $23, +1.4%) and (SPXS, $10, +1.6%); Short Russell 2000 (small-cap stocks) (SRTY, $20, +3.8%) and (TZA, $32, +3.8%). These are all higher risk plays so please monitor them closely and set a mental stop-loss before you initiate a position. More conservative investors can use the unlevered total bear market fund (TOTS, $26, +1%). While the bears are playing, the bulls should be busy building their shopping lists for when the market turns around. Let's hope that's soon!

    Subscriber Notes: There are no new entries as I'm waiting to see in which direction the market decides it wants to move.

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