ETF Trends
ETF Trends

Gold, silver, oil and VIX exchange traded funds (ETFs) went flying today as protests in Egypt grew more intense.

ProShares VIX Short-Term Futures (NYSEArca: VIXY) rose a whopping 8.2% as the Egyptian government deployed tanks to break up protests, increasing investor jitters and sending them to safe havens.

The news wasn’t too kind to Market Vectors Egypt (NYSEArca: EGPT), either: it fell 4% today.

On the flip side, however, are the big movers today, underscoring the degree by which the protests are beginning to worry investors:

  • United States Oil (NYSEArca: USO) jumped 4.4%
  • PowerShares DB Silver (NYSEArca: DBS) moved 4%
  • SPDR Gold Shares (NYSEArca: GLD) rose 2%
  • Vanguard Extended Duration Treasury (NYSEArca: EDV) gained 1% today

If you’re nervous about today’s big move, you can handle this volatility in a few ways:

  • Learn from a burst bubble: Many market watchers contend that warning signals are often given well in advance. The real lesson is that the markets can deliver steep losses at any time, so have your stop-loss ready to go.
  • Rebalance: Rebalancing and analyzing your portfolio periodically is important. That keeps your risk where you want it, but it also means you’re making small bets against market sentiment.
  • Use your strategy: Look for opportunities for investments by watching the 200-day moving average (or your preferred indicator). Practice using your strategy and quieting your emotions. The more you do it, the better you’ll become at it. As noted in the first point, also have a stop loss to protect yourself on the downside. [How to follow trends.]

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.