Monday, 12 October 2015

TVIX, UVXY - further horror to start the week

Whilst equities saw micro chop, the VIX continued to cool for the tenth consecutive day. The 2x lev' bullish instruments of TVIX and UVXY settled lower by -11.9% and -13.7% respectively. Near term outlook is for further equity upside.. and VIX cooling.

TVIX, daily

UVXY, daily


*first, an update on the VIX

Notably, the VIX weekly MACD (blue bar histogram) cycle is now negative for the first time since early August.

As for TVIX/UVXY.. after last weeks horror, considering the main equity market today, it was a truly lousy day for those still resolutely long-volatility.

It is one of those instances where market volatility will continue to cool, even on a day where the market was broadly flat.

*I have ZERO interest in being long VIX until the next FOMC.