Moreover, the analysts contend that stocks could hit a cyclical top in September given the depressed volatility or ongoing complacency as reflected by the CBOE Volatility Index, or so-called VIX.

“As an investor we would use the current low volatility environment to buy protection and/or we would generally be a buyer of volatility particularly on the FX side and in gold, where it is very likely to see significant moves over the next few weeks!” the analysts added.

Consequently, investors can turn to VIX-related and inverse stock ETFs as tactical, short-term trades to hedge the market risks.

For instance, the REX VolMAXX Long VIX Weekly Futures Strategy ETF (BATS: VMAX), iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) and ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) have been inching higher, with the VIX now hovering around 13.65. More aggressive traders have turned to the leveraged ProShares Ultra VIX Short-Term Futures (NYSEArca: UVXY).

SEE MORE: VIX, Volatility ETFs Reveal an Overly Complacent Market

Additionally, there are a number of bearish or inverse ETF options with varying levels of leveraged exposure to capitalize off a weakening S&P 500 as well. The ProShares Short S&P500 (NYSEArca: SH) takes a simple inverse or -100% daily performance of the S&P 500 index. Alternatively, for the more aggressive trader, leveraged options include the ProShares UltraShort S&P500 ETF (NYSEArca: SDS), which tries to reflect the -2x or -200% daily performance of the S&P 500, the Direxion Daily S&P 500 Bear 3x Shares (NYSEArca: SPXS), which takes the -3x or -300% daily performance of the S&P 500, and ProShares UltraPro Short S&P 500 ETF (NYSEArca: SPXU), which also takes the -300% daily performance of the S&P 500.

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