With the VIX continuing to break new cycle lows in the 13s, it was another week of horror for the 2x lev' bullish VIX instruments of TVIX/UVXY, which saw net weekly declines of -12.6% and -12.1% respectively. Near term outlook offers further equity upside into the next FOMC.
*first, an update on the VIX
It is notable that TVIX/UVXY have seen net weekly declines for the last 6 of 7 weeks.
No doubt equities will see some degree of retrace in the relatively near term, but it is very difficult to guess how deep the retrace might be... and in my view, it will be an overly risky trade.
*with the bigger weekly/monthly equity cycles turning back to bullish, I have ZERO interest in being long the VIX for the remainder of this year.