Friday, 15 November 2013

TVIX, UVXY - decaying into year end

With equity indexes continuing to battle higher, market volatility continues to remain very low. The 2x bullish VIX instruments of TVIX/UVXY are seeing the relentless problem of decay, and look set to fall lower for another 6-10 weeks.

TVIX, daily

UVXY, daily


*first, a reminder on the VIX, which declined 5.5% across the week.

Suffice to say, there seems absolutely zero reason for anyone to get involved in the VIX (at least from the bullish side) until early next year.

With the VIX set to remain low..the lev' instruments will just decay into year end..perhaps by another 20/30%.

TVIX is now 3 years old...

TVIX has declined somewhat..from the opening issue price (adjusted for all the reverse splits)...urghh

As ever...the leveraged instruments are for short term trading only..if at all.