Friday, 24 January 2014

TVIX, UVXY - huge buying interest into the weekend

With the VIX surging 31.7% @ 18.14, the 2x bullish VIX instruments of TVIX and UVXY saw a monstrous surge in trading volume - almost double the previous record. TVIX and UVXY both closed with daily gains of an extremely powerful 17%.

TVIX, daily

UVXY, daily


*first an update on the VIX, which saw net weekly gains of a rather astounding 45.8%

In terms of the 2x instruments, as ever, the decay is a real problem. It will only take one major bounce in equities to crush the VIX, and that will easily knock TVIX/UVXY lower by 10% or so.

Best guess...VIX maxes out in the 19/20 zone, with sp'1780/60.

Things only get interesting if the VIX can push into the mid 20s, but that sure looks difficult.

As ever...the 2x leveraged instruments are for short term holds only, as any mid-term chart fully displays.