Friday, 21 August 2015

TVIX, UVXY - exploding higher with the VIX

With the US equity market imploding into the weekend, the VIX exploded higher to the 28s. The 2x lev' bullish VIX instruments of TVIX and UVXY saw extreme net weekly gains of 62.0% and 63.5% respectively. Near term outlook is highly uncertain, and will be dependent on whether the PBOC act.

TVIX, daily

UVXY, daily


*first, an update on the VIX, which saw a net weekly gain of 118.5% - the biggest ever?

As for TVIV and UVXY, I would believe (I have not fully checked) these were the biggest net weekly gains EVER.

Of course, at some point equities are going to see a bounce - at least to the sp'2040/50s, the VIX will rapidly cool - probably to the mid teens, and that will crush TVIX/UVXY.

As ever... for short term holds only!