TVIX - widow maker still making widows

With the US and world equity indexes rebounding strongly, the VIX is back on the slide. The 2x lev (bullish) VIX instrument of TVIX fell a considerable -12.1%, settling @ $7.17. Near term outlook is for further downside, and the usual 'decay' problem sure won't help.


TVIX, daily

Summary

*first, an update on the daily VIX

As I noted yesterday, the daily closing candle for the VIX did not bode well for the equity bears. Today's gap lower was certainly not exactly a surprise. A black-fail candle - as I like to call them, are not to be dismissed lightly
-

As for the TVIX, rest of the week doesn't look good.

My broader market outlook remains a target equity cycle high around the time of the next FOMC (March'19). If that is the case, the TVIX will merely decay for another 10 trading days or so.
-

As ever...such lev' instruments are for short term holds only. Rarely do multi-month holds work out..even when the trend is going the 'right' way.