Often correlated with equity prices, copper futures took a tumble alongside global index futures overnight as Asia's markets opened. China's PMI numbers were in line with analyst expectations at 50.5, but acted as a further catalyst for selling, pushing European index futures down .5%. Meanwhile, gold prices elevated this past month, which happens to be the first time since August. During uncertain times, investors take a flight to safety in gold, which also happens to be behaving seasonally. In fact, February tends to be a quite strong month, and March - April are historically weak.
Other indicators of fear such as the VIX are exceeding median levels. Below is a histogram and density function VIX using daily prices for the past 5 years. Currently the spot VIX is at 18.60.
If you are looking for a way to play the rise in volatility, you can start shorting VXX leaps as the VIX futures curve flattens out. If you are looking for a couple good opening trades for Monday, take a look at Allstate, which has rallied 17 years in a row over the same 91 day period.
Stay smart and trade safe.
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