Friday, 19 August 2016

TVIX, UVXY - eight weeks of horror

With equities breaking another set of new historic highs, market volatility remains very subdued. The 2x lev' bullish VIX instruments of TVIX and UVXY saw an eighth consecutive net weekly decline, lower by -4.5% and -4.6% respectively. Near term outlook doesn't offer any realistic hope that the horror show will see a temporary respite.

TVIX, daily

UVXY, daily


First, an update on the VIX, which saw a net weekly decline of -1.7%.

As for TVIX/UVXY, even to me.. 8 weeks of straight declines is quite a bizarre sight.

In fact.... TVIX/UVXY have not seen 8 weeks of declines since they first appeared in summer 2012.

TVIX... weekly, 2012-2014.

Those are some scary big numbers on the right hand price scale.

TVIX first appeared at the equivalent of $195,307.50 per share.

... and if that doesn't remind you of the problem of long term holds... I can't offer anything more!