Friday, 5 February 2016

TVIX, UVXY - significant net weekly gains

With US equity indexes seeing sig' net weekly declines, the VIX was naturally on the rise. The 2x lev' bullish instruments of TVIX and UVXY saw net weekly gains of 18.7% and 18.5% respectively. Near term outlook offers renewed cooling in volatility, before first opportunity of hyper upside in March.

TVIX, daily

UVXY, daily


*first, an update on the VIX

As for TVIX/UVXY, a rather powerful net weekly gain, but still well below the high from January 20th, when VIX 32s, and VIX was borderline 13s.

As ever, such instruments are for short term holds only, not least due to the endless problem of statistical decay.

If equities see renewed upside next week, breaking above the Monday high of sp'1947, TVIX will probably be in the low 8s again, if not the 7s.

*I am seeking to go long TVIX from the sp'1960/80 zone, with VIX 18/17s.

I realise, considering this weeks equity declines, that seems difficult.