My Trading Strategy To Weather The U.S. Budget Mess

By Robert Zingale

Due to the U.S. budget and debt ceiling debates, I believe there will be increasing S&P 500 Index (SPX) volatility until a resolution is reached. aThis would imply a long position for Barclays Bank PLC iPath S&P 500 VIX Short-Term Futures (VXX) and Barclays Bank PLC iPath S&P 500 VIX Mid-Term Futures (VXZ).

However, VIX futures can quickly drop once a resolution is finally announced. Therefore, I am remaining in cash until a resolution is announced and will then enter either short VXX or VXZ positions.

The investments discussed are held in client accounts as of September 30, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.

Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures. For information about Covestor and its services, go to http://covestor.com or contact Covestor Client Services at (866) 825-3005, x703.

Robert Zingale

Robert Zingale

I have a passion for investing and have been actively managing my personal brokerage accounts since I was an undergraduate

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