TVIX, UVXY - increasing demand for volatility instruments

With US equities breaking new lows this week, the VIX soared into the 31s. Trading volume in the VIX instruments continued to soar. TVIX and UVXY settled with net weekly gains of 12.1% and 12.2% respectively.


TVIX, daily

UVXY, daily

Summary

*first, an update on the VIX, weekly

--
With the VIX not only breaking above the key 20 threshold last week, but this week into the low 30s, the VIX instruments are gaining huge trader attention.

Trading volume is at record levels, even with the VIX cooling down from the Wednesday peak of 31.06.
--

*Despite the ramp from sp'1820 to 1898, my broader equity market outlook remains bearish, with a primary target of sp'1650. Considering we have already seen the VIX in the low 30s, VIX 40s now appear a very valid target.