Your friends at “Fast Money” want to remind you to practice proper neck health. Yes, neck health. Why? Because if you’re an avid market watcher you’re at risk of getting whiplash.
In the first half of this year the Fed went from lowering rates to thinking about raising them. Oil fell to $86 before rebounding to nearly $140. Investors cheered the biggest tech merger ever before it completely fell apart. And the dollar dived, rebounded, and began diving again.
So you see, in this market, proper neck health is very important. Especially since we expect more of the same in the second half.
Already, OPEC says we may get $170 oil this summer before crude turns lower by the end of the year. And Goldman Sachs predicts Citigroup's dividend may again be in danger.
What? You already know that? Well, here's something you don't know, the Fast Money way to smooth out the ride.
I think you should always be hedged, says Karen Finerman. I try to use ETFs and then options on ETFs.
I also watch the VIX closely and trade the volatiliyt. Right now volatility is nowhere near where it had been earlier in the year. If the VIX spikes into the 30’s that’s the time when you can buy stocks on a panic – and at a discount to their fundamental value. But not before.
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