Friday, 11 September 2015

TVIX, UVXY - significant net weekly declines

With the VIX continuing to cool from the hyper spike of 53.29 to a weekly close of 23.20. The 2x lev' bullish VIX instruments of TVIX and UVXY saw net weekly declines of -21.9% and -22.5% respectively. Near term outlook is for further VIX cooling.

TVIX, daily

UVXY, daily


*first, an update on the VIX,

As for TVIX and UVXY, the series of weekly gains has concluded, as VIX has already been cut in half from the high of Aug' 24th.

As ever... such leveraged instruments are for short term holds only... not least due to the decay. Indeed, with the VIX itself still relatively volatile, the rate of statistical decay is much higher than normal.

Best guess.. sp' maxes out in the 2000/2070 zone, with VIX flooring in the 17/15 zone.

From there, I am seeking renewed equity weakness... back into the sp'1800s... which should equate to VIX (at least briefly) in the 40s.