TVIX, UVXY - huge weekly declines

Despite the VIX seeing Friday gains, the VIX was still net lower on the week by -16.6%. The 2x lev' bullish instruments of TVIX and UVXY saw sig' net weekly declines of -25.4% and -25.6% respectively. Near term outlook is for further declines into September.


TVIX, daily

UVXY, daily

Summary

*first, an update on the VIX weekly..

A second consecutive net weekly decline of a very significant -16.6%. VIX might jump to the 15s on Monday, but looks set to slip back to the 11/10s. 9s are even possible if sp'2000s in September.

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As for the 2x instruments...

It was a pretty horrific weekly decline of -25% for TVIX/UVXY. Anyone still holding long is going to face a real battle just to regain half of those declines next week.

All things considered, if sp'2000s in September, then there is little point in being long volatility in the immediate term.

As ever... such leveraged instruments are for short term holds only...not least due to the statistical decay issue.