TVIX, UVXY - increasingly volatile

With the VIX settling lower for a second consecutive day, the 2x lev' bullish instruments of TVIX and UVXY were naturally on the slide, settling lower by a very significant -21.3% and -23.8% respectively. Near term outlook offers a Wednesday reversal.. with renewed upside into early July.


TVIX, daily

UVXY, daily

Summary

Having imploded from February to early June, the VIX instruments continue to attract a lot of attention.

TVIX looks vulnerable to the 2.30/2.20s, but with subsequent upside to the 4s, possibly 5s on a very brief spike - which would likely require VIX 30s.

UVXY looks vulnerable to the mid/low $11s... with viable upside to the 18/21 zone.

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As ever, long term holds in such leveraged instruments never ends well.

Also.. one tragically ironic aspect of higher volatility... the 'statistical decay' problem is worse.
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Yours truly is more focused on shorting equities and long-Gold, and I'll likely refrain from meddling in the VIX for the next few weeks.