Stocks Could Test 200-Day as Risk Comes Off Ahead of Weekend

Friday is a bad day to double down on geopolitical risk, but as we approach the weekend, it appears that is exactly what is happening. As Saudi Arabia and Egypt adventure forward with possible plans for an assault on Houthis in Yemen, it appears the media is grabbing hold of many Middle East issues now, and that is likely to exacerbate fear. This is just the sort of Middle East mess we do not need to worry about over 2 days of closed markets, so stocks could selloff Friday as a result. Investors concerned about bearing weekend market risk can buy protection via various volatility instruments like the iPath S&P 500 VIX ST Futures ETN (NYSE: VXX) or buy gold relative instruments like the SPDR Gold Trust ETF (NYSE: GLD). See my full stock market report here.

Market Sector Security	03-26-15
SPDR S&P 500 (NYSE: SPY)	-0.2%
SPDR Dow Jones (NYSE: DIA)	-0.3%
PowerShares QQQ (Nasdaq: QQQ)	-0.3%
iShares Russell 2000 (NYSE: IWM)	-0.1%
Vanguard Total Stock Market (NYSE: VTI)	-0.2%
PowerShares DB US Dollar Bull (NYSE: UUP)	+0.4%
SPDR Gold Trust (NYSE: GLD)	+0.7%
United States Oil (NYSE: USO)	+4.9%

DISCLOSURE: Kaminis is short UUP. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.