Madame VIX Sees More Fear, Lower ETF Prices(VXX, XIV, TVIX)
“Madame VIX” sees more fear, lower ETF prices ahead as CBOE Options Volatility Index spikes
The CBOE Options volatility Index spiked today, sending VIX, volatility ETFs upwards with iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) jumping 2.95% and Velocity Shares Daily Inverse VIX Short Term ETN (NYSEARCA:XIV) dropping 3.1%. The popular leveraged volatility ETF, VelocityShares Daily 2X Short Term ETN (NYSEARCA:TVIX) popped 6.04%.
Volatility soared today on fears of ongoing problems in Europe and declining confidence in European leaders’ ability to confront and contain the “contagion” of their debt crisis. On a technical basis, VIX gained 4.7% and is oversold and nearing significant support levels at the 17 range.
VIX ETF Summary:
- iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX): + 3.03%
- Velocity Shares Daily Inverse VIX Short Term ETN (NYSEARCA:XIV): -3.1%.
- VelocityShares Daily 2X Short Term ETN (NYSEARCA:TVIX) + 6.24%.
Bottom line: Madame VIX sees more fear entering the market which portends the possibility of lower ETF prices ahead. The most popular volatility ETF, iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) traded more than 18 million shares today as investors and traders sense opportunity in the changing patterns of Madame VIX’s crystal ball.
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