Wednesday, 28 March 2012

TVIX, it only took the maniacs 48 hours to forget

Thursday, Friday, and this past Monday were true days of horror for the various VIX trading instruments - not least the infamous TVIX. Even the clown channels were talking about how much a failure the various VIX instruments have turned out to be.

Well, it only took the maniacs 48 hours to completely forget just how awful VXX, UVXY, and TVIX are, they were buying it by the shovel load today.

The fact that all 3 ended well below their intra-day highs is of no consequence to the maniacs. They are probably still buying in after-hours trading this day, and some will even be buying Thursday pre-market - not least if the market is up. They will think they are getting a 'bargain'.  Sigh.

TVIX, daily

There was strong buying volume today. How long before they all get kicked/stopped out? Considering the 60min cycles on both the indexes and the VIX, it looks like tomorrow that many of them will get the boot.

The recent targets I have stated of as low as $1 equivalent on TVIX still seem viable, if Sp'1550, VIX <11 by late June/July. As ever....we'll soon see!

One thing IS for sure...they will decay...and keep decaying.