Chart of Day: Why the Market Plunged Again on ThursdayDecember 6, 2018
The hits just keep coming.
In late November 2018, the Dow Jones rocketed 617 points.
Days later, it fell 800 points.
Now, we’re down another 445 points to 24,582. All after Canada arrested the CFO of Chinese telecom company, Huawei. Canada’s arrest, at the request of the U.S. has enraged China. Reportedly, he faces potential extradition to the U.S. China is now demanding that the U.S. “rectify wrongdoings” and free the CFO.
At the same time, oil is pulling back again after Saudi Arabia proposed a smaller than expected production cut at the OPEC meeting.
In short, it’s a mess out there.
However, as we noted the other day, it’s always best to protect against volatility with the Velocity Shares Daily 2x VIX Short-Term ETN (TVIX), the iPath S&P 500 VIX Short-Term Futures (VXX), and the the ProShares Ultra VIX Short-Term Futures (UVXY), which traded at $50.78. It now trades at $62.77.