With the BREXIT shocking world capital markets, equities saw severe weakness, with the VIX soaring into the weekend. The 2x lev' bullish instruments of TVIX and UVXY managed a third consecutive net weekly gain, higher by 6.8% and 7.4% respectively. Near term outlook threatens VIX 30s.
*first, an update on the VIX, which saw a powerful net weekly gain of 32.7%
In the near term, the VIX 28/32 zone looks a relatively easy target. If sp'1950/25, then VIX 35/45.
As for TVIX and UVXY, the net weekly gains are not exactly inspiring, relative to the gain in the VIX.
However, Friday did show that TVIX/UVXY do have their moments of glory. If would seem another 50/60% upside is viable next week... if the main market declines by at least a further 4%.
*I am long VIX, via option calls, and hold across the weekend, seeking my next exit in the 30s.