Betting on beaten-up exchanges carries great risk but the rewards could also be substantial.
High-beta exchange stocks could rise sharply if the market makes a turn for the better, however they could fall just as sharply if the market turns for the worse.
In high-beta stocks, explains Karen Finerman, for every 1 point move in the S&P you get a larger point move (either up or down) in the stock. For example in NYX for every 1 point move in the larger index NYX stock should move a little more than 1.5 points
NYSE (NYX) 1.52
Nasdaq (NDAQ) 1.37
CME Group (CME) 1.23
NYMEX (NMX) 1.21
Traders, what do you think?