This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Volatility, Natural-Gas, Food Funds Slump

NEW YORK ( TheStreet) -- Re-crossing the Dow 10,000 threshold signals a retreat of bearishness in the stock market, adding confidence to U.S. consumers and businesses. The CBOE SPX Volatility Index, a measure of bearish sentiment, has steadily dropped back to pre-panic levels over the past year.

No exchange traded product did worse than the iPATH S&P 500 VIX Short-Term Futures ETN (VXX) in the third quarter. It fell 27%. (Inverse and leveraged funds were excluded.) The exchange traded note currently bets investor money on CBOE VIX October and November 2009 futures contracts, each day rolling more of the October contracts into November. This was the wrong time to gamble on higher volatility.

The commodity plays of worst performers fall into one of two categories: energy or food. Of the five energy funds listed, the United States Natural Gas Fund (UNG) lost 15% of its value last quarter as the spot price of Henry Hub natural gas declined 11.4%.

The United States Oil Fund (USO) leaked 4.6%, even with the spot price of West Texas Intermediate crude oil gaining 1% for the quarter due to the inherent risks of the fund's investment strategy, including risks associated with trading futures contracts. The iPath Dow Jones-UBS Energy Subindex Total Return ETN (JJE) has an index mixture of 51% West Texas Intermediate crude, 24% natural gas, 14% unleaded gasoline and 11% heating oil. The basket combined for a loss of 5.2% in the third quarter.

If the ninth-worst performing ETF, the PowerShares DB US Dollar Index Bullish Fund (UUP), continues to slide and gasoline inventories continue to tighten, the broader Energy Subindex ETN could become the best of the worst performers in the coming months.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
COW $23.67 0.00%
GRU $4.05 0.00%
GAZ $0.49 0.00%
JJE $4.39 0.00%
JJG $30.28 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs