Shares are acts of charity, to open the week on Monday, but make no mistake: the volatility that was in the game in recent weeks, not going anywhere. It looks and feels very short respite before more fireworks.
Therefore, a major difficulty remains in the game, waiting for China’s response to President Donald trump ad another $100 billion in trade tariffs (for a total of $150 billion) in the current the pressure of the fed tightening and now fears that the world economy is about to slow its pace of growth.
To this list we add the threat of a U.S. airstrike on Syria in retaliation for the alleged attack of chemical weapons. That, in turn, carries the threat of retaliation by the allies of Syria, Iran and Russia. If all that wasn’t enough, we also face the start of the first quarter of the season, with expectations high in the sky.
In response, to keep an eye on these four funds as of market chaos plays out:
Etfs to watch: ipath in the short term, the S&P 500 index in the US futures (data)
Tied to underlying cboe volatility Index (:VIX), known as wall Street’s “fear gauge,” the data is constantly pushing higher since mid-March, the market turbulence returned and the terms of the investors used from the end of 2016 until the beginning of 2018, seems to have disappeared forever.
These data has increased dramatically in early February, as the billions in short-term volatility of the auction was promoted heavily.
To watch even after years of lazy assumptions that markets could only rise gently shaken, as the main support for the dynamic of the fed’s quantitative easing policy, now actively restored not only through interest rates but “quantiative tighten” as well.
Etfs to watch: spdr s&P 500 in real-time (spy)
The most important of the S&P 500 index in real time (NYSEARCA:spy) SPDRs are among the most actively traded ETFs available.
Their importance and the underlying index S&P 500, is the reason the index continues to trade around key technical levels of support and resistance.
At the end of February and mid-March led to another test of the 200-day moving average and the fluctuations around the 260 level corresponding to the 2,600 level on the s&P 500.
Look at the breakdown of the 200-day mA which is not traded lower on a significant basis since the beginning of 2016.
Etfs to watch: VanEck vectors Junior gold miners (data)
I continue to watch the rally in precious metals, such as VanEck Junior gold miners etf (NYSEARCA:data) in the near future on the safe inflow.
Ghost-like trade war and the actual war (in the middle East and in the South China sea) should ensure the inflow of investments into gold and silver, so that no one has seen for many years.
In addition, interbank lending rates are rising fast as the Federal reserve tightens its grip on financial markets, to monitor the emergence of risk credit market default rate on the rise, and thus increasing concerns about the health of the banking system.
Etfs to watch: the securities Commission of China (FXI)
In the Commission on securities of China large-Cap ETF real-time (NYSEARCA:FXI) is bound to a collection of high capitalization of the Chinese stock market, including tencent and industrial and commercial Bank of China. In real time-that’s 13% from its late January the Supreme and looks to fall below its 200-day moving average as trade frictions continue to deteriorate.
In the FXI had almost double the incidence of early low in 2016, which was the last time the Fund traded significantly below its 200-day average. At that time, selling was driven by fears of currency devaluation, as well as concerns about unresolved problems with debt China.
Anthony Mirhaydari is founder of the edge (etfs) and edge Pro (variants) of the investment newsletters. Free two – and four-week study of offers extended to InvestorPlace readers.