Friday, 8 January 2016

TVIX, UVXY - extreme net weekly gains

With equities severely net lower, the VIX built gains across the week. The 2x lev' bullish VIX instruments of TVIX and UVXY saw net weekly gains of 50.2% and 51.0% respectively. Near term outlook offers threat of a brief, but severe Monday equity drop... and that might equate to a further 40/60% higher in TVIX/UVXY.

TVIX, daily

UVXY, daily


*first, an update on the VIX, which saw a net weekly gain of 48.3%.

As for TVIX and UVXY, despite opening lower on Friday... with the VIX rebounding powerfully higher in the late afternoon, it was a very strong weekly close.

*I remain holding TVIX-long across the weekend.

I am seeking an exit in the 11/12s next Monday morning, and that would more than suffice for a trade that I only took late Thursday.

It is my intention to trade TVIX (long side only) across the weeks/months ahead.. until the sp'1600s.