Hey, Ross here:
I talk a lot about looking at what the institutional investors – the “smart money” – is doing…
Especially when it comes to their positioning within sectors and stocks.
That’s because they’re the key market movers, so understanding their positioning allows us to take advantage of their big money flows.
Today, we’re going to look at something a little different…
Their positioning on volatility.
Chart of the Day
Take a look at the chart above.
It shows non-dealer VIX futures positioning – essentially, how heavily large asset managers are positioned for or against a rise in market volatility.
When the bars are below zero, they’re net short volatility.
That means they’re positioned for calmer markets.
When the bars move above zero, they’re net long volatility.
That means they’re either betting on – or at least hedging against – a pickup in volatility.
And right now, you can see that positioning has flipped sharply higher.
They’re net long volatility at a level unseen in many months.
This is how the “smart money” is currently positioned in volatility – they’re expecting more of it, much more.
What does that mean for us?
I explain below.
Insight of the Day
Volatility isn’t just something to survive – it’s something to use.
If the smart money is positioning for more volatility, then we should pay attention.
Because volatility cuts both ways.
For most investors, it’s a threat.
For prepared traders, it’s an opportunity.
Higher volatility creates larger swings…
Larger swings create mispricings…
And mispricings create the chance to make money whether markets go up or down.
In other words, when volatility rises, the goal isn’t just to protect yourself.
It’s to know how to profit from the chaos.
There’s one hot sector that’s been being dragged down by all this volatility…
But it’s now reached what I think is a perfect buy point.
And there are two plays right now that I think are the best for taking advantage of this.
I just shot a new YouTube video all about it – so just click here to watch it now.
Customer Story of the Day
“Ross Givens from Trader’s Agency is an awesome resource to help you with your investing needs and investing education.
I waited about three months to write this review to give myself time to see the impact on my portfolio and I have been completely satisfied.
Ross has a no nonsense, simple approach that makes it easy for all investors and he takes the time to answer all questions on a weekly basis.
Thanks, Ross and Traders Agency!”
Ross Givens
Editor, Stock Surge Daily
