Fairlead Strategies Idea Generator
ProShares VIX Short-Term Futures ETF (VIXY) & Updates (AMLP, RGA)
We recommend taking profits in the Alerian MLP ETF (AMLP) because it has signs of upside exhaustion per the DeMARK Indicators®, as well as Reinsurance Group of America (RGA), which has lost short-term upside momentum.
With volatility likely to pickup in the historically turbulent month of September, we recommend ProShares VIX Short-Term Futures ETF (VIXY):
VIXY has seen a positive reaction to a short-term counter-trend “buy” signal from the DeMARK Indicators® last week. The last signal of its kind was flashed in April, which proved to be timely.
The DeMARK signal is made higher conviction by a notable shift in short-term momentum that was confirmed earlier this week by the daily MACD. The momentum shift suggests that volatility is likely to expand further in a reaction to intermediate-term oversold conditions.
Two consecutive daily closes below the most recent low near $13.10 can be used as a stop-loss. An upside target can be gauged by the 200-day MA, currently near $17.50.
ProShares VIX Short-Term Futures ETF (VIXY, $14.06)
Target: $17.50
Stop-Loss: $13.10