Market risk has been on the rise as of late.  

As of Friday, the percent of S&P 500 components that are in the Elevated Risk State according to the SmartStops Aggressive Risk Signals reached 57%, which is 1.58 times the 100 day average of 36%.  

  (View Market Risk Barometer)

The S&P 500 Volatility Index (VIX) has also been on the rise. This is making buying protection via options a bit more expensive.  

Recent Events Impacting Market Risk

• The Federal Reserve Chairman, Ben Bernanke, indicated that late this year the Fed may begin to curtail the current policy of quantitative-easing.  Read Article 

• Housing report showed continued strength in housing with prices rising in many markets.  Read Article 

• China's cash squeeze raises fears of a global economic slowdown. Read Article. 

Highlighted Stocks & ETFs 

Netflix (NFLX)   $216.90   (view NFLX)

Netflix hit a high this week of $235.88 on Thursday before pulling back and closing flat for the week at $223.52. Its 52 week high is $248.85 which it hit on May 16th. The stock is up a whopping 140% year to date.

With the incredible run it has had, and with economic uncertainty creeping back into the markets, it may be a good time to maintain stop loss orders to protect some of the recent gains.  

Netflix remains in the Normal Risk State according to SmartStops' conservative risk signals but did trigger a risk alert on May 28th placing it in the Elevated Risk State according to the aggressive risk signals. 

Recommended aggressive and conservative stops are $201.95 and $196.70 respectively.    

Over the last 2 years Netflix has been extremely volatile and has experienced several periods of above normal or elevated risk.

(Conservative Risk Signals - periods of elevated risk highlighted in gray). 

View the full SmartStops Risk Profile for Netflix