TVIX - still on the slide

With the VIX falling another -9.5% to the 14s, the 2x bullish VIX instrument of TVIX was severely impacted, settling -12.3% @ $2.84. Further weakness to the 2.60s seems viable, before a short term recovery rally.


TVIX, daily

Summary

*first, an update on the VIX...

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With the VIX being cut in half from the spike high of 31.06, TVIX (along with UVXY and VXX) have been essentially destroyed.

However, on any basis, the bulk of the down wave has now occurred, probably on the order of 90/95%.

Best guess.. further VIX weakness into the FOMC of Wednesday afternoon, but a reversal of some degree seems likely.

Best case for TVIX is a 'moderate' recovery to the 3.75/4.00 zone... but that will be of little solace to those who have been holding long since the $6s.

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