Wednesday 27 June 2012

TVIX, UVXY - warning of downside in equities

Whilst the main indexes all rose today, the VIX held up very well. Both the TVIX and UVXY closed around 1%.higher


TVIX, daily



UVXY, daily



Summary

With the VIX holding firm around the big 20 level - and seemingly set to move to 22/24 in the days ahead, both TVIX/UVXY look set to leap upward.

As ever though..such instruments are arguably for day-trading only. Holding overnight, both are subject to periodic gaps lower of 15/25%.