TVIX, UVXY - baby bull flags, ready to surge

With the weekly index charts now showing a confirmed down trend since the QE3 spike highs, the VIX is continuing to creep higher. Finally, after many months of nightmarish decay, the two big 2x (bullish) VIX instruments of TVIX and UVXY have broken the down trend..and are now presenting baby bull flags.


TVIX, daily

UVXY, daily

VIX, weekly

Summary

With the VIX closing the week +4.5%, the time of the leveraged VIX instruments is seemingly back again.

Both *TVIX and UVXY are now sporting very clear little bull flags. I'm not going to give any price targets for either, but suffice to say, both could easily jump 30/40% if the VIX can snap higher into the mid 20s.

Near term trend for the VIX is upward, next week looks set for further index downside, and a VIX >20.

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*I'm still expecting TVIX to see a reverse split 'sometime soon', probably on the order of a 1 for 20 ratio
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