Friday, 28 March 2014

TVIX, UVXY - poised to surge, if briefly!

US equities saw moderate swings across the week, with the VIX naturally seeing similar minor moves. The 2x lev' (bullish) VIX instruments of TVIX and UVXY saw net weekly declines of -2.2% and -2.8% respectively. If sp' can break <1830 next week, then the VIX should surge into the high teens.

TVIX, daily

UVXY, daily


*first, an update on the weekly VIX, which saw a net weekly decline of -3.9% .


As for TVIX and UVXY, this sort of chop is never good in terms of the decay issue, although volatility itself is the decay is somewhat less.

If VIX 17/18 next week, both TVIX and UVXY should climb 15/20%. Of course, for those holding since early February, that amount of gain is not going to make up for the cumulative losses.

As ever...such instruments are for short term holds only!