Volatility Remains Elevated Amid Geopolitical Turmoil

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today picks up on a distinct lack of major money flows in this holiday-shortened week, as volatility stays at a relatively high level amid several global conflicts.

Inflows have been very light in the marketplace this week, with little to nothing to note and a general absence in “dip buyers.” We have pointed out the momentous rise in the VIX in recent sessions, and the volatility gauge is once again trading higher today.

The VIX is trading the mid $15’s after having an $11 handle just five trading sessions ago, and the recent tensions between the U.S. and Russia regarding Syria — not to mention North Korea and its neighbors — have not helped. That uptick is bringing long volatility ETPs like VXX and UVXY along for the ride as well.

Additionally, we have pointed out impending quarterly corporate earnings season, which kicks into high gear tomorrow (ahead of the three day weekend), with major banks like JPM and WFC reporting in the AM. XLF (Financials) are weak again today (-0.5%) ahead of such reports. XLF, as we had mentioned yesterday has seen some bloodletting this week, in losing about $600 million thanks to redemption flows.

The iPath S&P 500 VIX Short Term Futures TM ETN (NYSE:VXX) was trading at $17.91 per share on Wednesday afternoon, up $0.07 (+0.39%). Year-to-date, VXX has declined -29.79%, versus a 4.70% rise in the benchmark S&P 500 index during the same period.

VXX currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #5 of 11 ETFs in the Volatility ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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