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When oil spikes... Inflation fears return... Rates threaten to move higher... And the most crowded AI stocks start cracking... You do not get cute. You pay attention. Because this is exactly when overowned story stocks can turn vicious. The recent sell-off was not just noise.
And Nvidia was still under pressure recently while other parts of the market tried to bounce. That is the kind of action that tells me investors are starting to separate AI winners from AI spenders. And that distinction is everything. Because the biggest fortunes in a technology supercycle are rarely made by chasing the most obvious stock after everyone already owns it. They are made by identifying the next wave before the crowd understands it. Phase 1 builds the infrastructure. Phase 2 creates the dominant businesses. I believe we are entering that shift now. And I have identified three AI companies that could sit right in the path of it. Their customers cannot easily leave. Their platforms are becoming mission-critical. And each one is using AI to attack a massive real-world market. That is the Phase 2 setup I believe deserves your attention now. The crowd is still arguing about whether the AI boom is real. I think that is the wrong question. The right question is: Who actually profits from Phase 2? Good investing, Alexander Green Today’s editorial pick for you How Investors Can Trade Market Volatility Ahead of the Midterm ElectionsPosted On Aug 24, 2026 by Ian Cooper 
For investors looking for ways to potentially trade a rise in market volatility ahead of the midterm elections, products tied to VIX futures can provide one possible strategy. These include the ProShares Ultra VIX Short-Term Futures ETF (UVXY), iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX), and ProShares VIX Short-Term Futures ETF (VIXY). Table of ContentsHistorical data shows why election-related volatility can attract investors’ attention:
Nowadays, we can see it happen again. To trade a potential move higher, investors can always bet on volatility using: UVXY Can Magnify a Volatility SurgeUVXY is an exchange-traded fund (ETF) from ProShares that gives investors exposure to short-term market volatility. The fund is connected to the VIX, which is often called the stock market’s “fear gauge.” When investors become worried about the market, the VIX often rises. When investors are more comfortable, the VIX often falls. However, UVXY does not directly track the VIX. Instead, it tracks VIX futures, which are contracts based on where investors expect volatility to be in the future. UVXY can be very volatile for two main reasons. First, it uses 1.5× leverage. This increases the size of its daily moves compared with the underlying index. Second, UVXY is based on VIX futures. The value of those futures can change quickly when investors’ expectations about the stock market change. This means UVXY can rise sharply when markets become nervous. But it can also lose value when markets calm down. 
VXX: Exposure to the Market’s Fear TradeVXX is an exchange-traded product designed to give investors exposure to short-term market volatility. VXX is also connected to the VIX, which is often called the stock market’s “fear gauge.” When investors become nervous about the market, the VIX often rises. When markets are calmer, the VIX often falls. However, there is an important thing to understand about VXX: it does not directly track the VIX. Instead, VXX is designed to track an index made up of VIX futures contracts. VXX tracks the S&P 500 VIX Short-Term Futures Index. This index uses VIX futures contracts that are generally focused on the short-term outlook for market volatility. The index regularly moves from futures contracts that are getting closer to expiration into contracts with later expiration dates. 
VIXY Keeps the Volatility Trade SimpleThe VIXY is an exchange-traded fund (ETF) from ProShares that gives investors exposure to short-term market volatility. It is designed to follow the performance of the S&P 500 VIX Short-Term Futures Index and provides 1× exposure to that index. That may sound complicated, but the basic idea is fairly simple: VIXY is designed to track short-term futures contracts tied to the VIX, an index often called the market’s “fear gauge.” The VIX measures expected volatility in the S&P 500. When investors become nervous about the stock market, the VIX often rises. When markets are calm, the VIX often falls. 
The Big Question: Will Volatility Actually Rise?With the midterm elections approaching, volatility could become an interesting area for investors to watch. History shows that the VIX has made some pretty big moves around past elections, although there have also been years when volatility moved lower. That is what makes a potential election-volatility trade interesting but also risky. There is no guarantee that the VIX will rise simply because an election is approaching. For investors who do expect volatility to pick up, UVXY, VXX and VIXY offer different ways to potentially take advantage of that move. This is a PAID ADVERTISEMENT provided to the subscribers of StockEarnings Free Newsletter. Although we have sent you this email, StockEarnings does not specifically endorse this product nor is it responsible for the content of this advertisement. Furthermore, we make no guarantee or warranty about what is advertised above. Your privacy is very important to us, if you wish to be excluded from future notices, do not reply to this message. Instead, please click Unsubscribe. StockEarnings, Inc |
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