I have been watching the drama in Washington D.C. over the budget. I have no real idea whether they cut a deal or not tonight, but it seems the Republicans don't have the Senate nailed down. If they don't get all but one of the Republican Senators, right now they're missing at least 3, then there will be a Government shutdown come Monday if there is no deal by then.
The only way to get Democrats on board for a budget deal is to include a deal on DACA, which seems remote, although it would be a no-brainer to do. Then again, who ever accused politicians of having brains.
So, here's where I am at. I am going to buy a few calls on the iPath S&P 500 VIX ST Futures ETN (VXX) to start a long position on volatility. Remember, this is a high risk move. We can't own VXX for longer than a month or so on options and the actual vehicle is basically a day trading security. So, this is very speculative. However, when it works, it works big usually.To read more, a subscription is needed: Click here to subscribe