Wednesday, 16 March 2016

TVIX, UVXY - further weakness as VIX crushed

With equities breaking a new cycle high to sp'2032, the VIX was crushed to the 14s. The 2x lev' bullish VIX instruments of TVIX and UVXY settled lower by -5.8% and -7.3% respectively. Near term outlook threatens early Thursday weakness, but then a viable key turn.

TVIX, daily

UVXY, daily


*first, an update on the VIX... currently net lower for a fifth consecutive week.

Suffice to add.. with the VIX having been cut in half, the down cycle from Feb'11th is about complete.

*I am seeking to be short equities and long the VIX (via TVIX) by 11am Thursday.

On any fair basis.. we're at the very low end of the cycle... and in theory, the equity market should cool into end month.