Friday, 7 February 2014

TVIX, UVXY - a second day of horror

With the VIX getting crushed into the low 15s, the 2x bullish VIX instruments of TVIX and UVXY saw a second day of abject horror, both declining by around -12%. Across the week, TVIX & UVXY saw net declines of around -17%.

TVIX, daily

UVXY, daily


First, an update on the weekly VIX

We have yet another huge fail in the VIX to break AND hold above the 200 weekly MA. This magnitude of fail does not bode well for equity bears for 'some weeks'.

As for TVIX/UVXY, the net weekly declines, mask huge gains seen on Monday. Most notable, whilst the VIX put in a lower high on Wednesday, TVIX and UVXY still managed to break new highs - as the main market was still concerned about the looming Friday jobs data.

As ever...the leveraged instruments suffer from severe decay over time, and are (almost always) for short term holds only.