TVIX, daily
UVXY, daily
Summary
TVIX and UVXY declined for the 13th day - from 15, since the VIX peaked @ 23.23 on Friday Dec'28th (in AH trading).
An outright nightmare for those holding - even from just last Friday afternoon!
*at the current rate of decline, both will need another reverse split within a month or two.
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VIX, daily
The underlying MACD (blue bar histogram) on the VIX does look like we'll see it go positive cycle later this week, certainly by this Friday/ next Monday, but how far up ?
At best, maybe a straight forward gap fill in the 16-18 zone? Anything over 18 just seems completely unlikely until the late Spring - and thats assuming the US economy slips into a moderate recession.
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QE3 - the one that will never end, is fully underway now, with 45bn of POMO money per month..every month. That will certainly help to prop up the market.
The VIX will thus likely stay under the important 20 threshold for many months to come, and if that is the case, then anything that is long volatility, will relentlessly decay.
