Trade of the Week: Long VIX

We want to do this with a stop loss below the August low at 15.25 and an upside target above the 30.00 level.

(partial video transcript)

Previous trading results

Axel Rudolph: Hello and welcome to this week's Trade of the Week on Monday, September 30th, 2024. Let's start with a look at our short soybean trade that we made on September 9th. And you can see here that we took a short position because we thought the downtrend would continue, and the price actually went down a bit.

You can see our entry level at 1,023 in this Daily Financial Bet (DFB) – it was actually 1,020 – but we have traded sideways since then. And then we actually went up last week, but because we had a very wide stop on that trade above the April lows and the early July highs, we're still in that trade at the moment, but currently underwater. So in this case our stop loss is still at 1,150.

And I think the week after we left we had a long position in New York sugar futures and that trade worked out very well. You can see here that we started at 7:00 p.m. at 7:23 p.m., I should say here at this DFB, and then experienced a very strong upswing. And for those of you who didn't get out at our upside target of 21.00, and then last week when we were trading at 22.80, I had no reason to get out either. Well, maybe you got out near 23.50 or so, but if you hadn't, for me an exit would have been as soon as we got that gap lower on Friday.

So I probably would have on April 23rd. or May 23rd or something like that get another one. But regardless, for me this trade probably ran its course in the short term. You may want to get out now or hope for a recovery, which is possible, but that's entirely up to you. But no matter, the trade worked really, really well.

Watch the video for the full summary of trading results so far

This week's trading opportunity

With all the Federal Reserve (Fed) speakers lined up this week, Jerome Powell speaking on Friday and non-farm payrolls being announced, and market volatility often increasing dramatically in October, especially in the year of the US presidential election, I would like to look at the VIX , the volatility index. So that's my trade of the week; to follow the volatility index.

So this week's “trade of the week” is to buy the volatility index with a stop loss below the late August low at around 15.25 and an upside target probably above the 30.00 level.