Friday, 19 February 2016

TVIX, UVXY - significant net weekly declines

With US equities seeing very significant net weekly gains, the VIX was naturally in cooling mode. The 2x lev' bullish instruments of TVIX and UVXY, declined by -20.9% and -21.0% respectively. Near term outlook is for further VIX cooling, at least to the 19/18s.

TVIX, daily

UVXY, daily


*first an update on the VIX, which saw a net weekly decline of -19.2%.

As for TVIX/UVXY, we've now seen a very significant decline from the volatility high of Feb' 11th.

In the case of TVIX, we've seen it fall from $13.58 to the low 9s.. a clear 30%.

*my broader outlook remains unchanged.. seeking the sp'1600s.. with market shaking bankruptcies in the oil/gas/mining sector. That should see the VIX at least briefly explode to the 40/50s.