By Nigam Arora & Dr. Natasha Arora
Editor’s Note:
As is often the case, with hindsight, the timing on Arora calls is often as perfect as it gets in real life. Profits were taken on Friday when SVXY traded near its highs. Today, SVXY has pulled back after Moody’s downgraded U.S. debt. Fortunately for paying members of The Arora Report, profits were taken near the highs before today’s drop. This trade alone paid for more than a year of membership.
Inverse volatility is a great trade. When the stock market drops, volatility rises. The standard measure of volatility is VIX. After President Trump’s Liberation Day, VIX shot up to 35.05. Since then, VIX has dropped to 17.66 as of this writing. It is easy to see how much money can be made by short selling an instrument related to VIX. For those who do not want to short sell, there are inverse ETFs related to VIX.
VIX itself is an index. You cannot trade it. However, there are futures on VIX that can be traded. Trading futures is not suitable for most investors. Fortunately, there are ETFs based on VIX futures.
SVXY
SVXY is an inverse ETF. It moves higher when volatility goes lower. Since VIX tends to be very volatile, the beauty of SVXY for most investors is that it moves 50% of VIX. This reduces the risks investors take.
Very Nice Profits
When the stock market was near the recent lows, The Arora Report gave a signal to buy SVXY. There are very nice profits on SVXY. SVXY is trading at $41.41 as of this writing.
What To Do Now
It is time to book profits and exit the trade.
307 Profit Taking Signals Since Trump’s Reelection
Since President Trump’s reelection, The Arora Report has given 307 profit taking signals prior to this signal. SVXY is the 308th profit taking signal since President Trump’s reelection.
Steady Stream Of Profits
The Arora Report system calls for always booking some profits on an ongoing basis as unrealized profits can quickly disappear. At the same time, The Arora Report system synergistically combines short term profit taking with long term investing. This synergistic combination leads to maximizing the wealth you generate over your lifetime while controlling risks.
It is said the best time to plant a tree was 20 years ago, and the next best time is now. If you have been missing a steady stream of profits, no worries. The best time to start on the road to booking a steady stream of profits and maximizing the wealth you generate over your lifetime is now.
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Nigam Arora
Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.
Dr. Natasha Arora
Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.
