VIX ETFs Bump Along Bottom
VIX ETFs continue to scrape along bottom as Apple (NASDAQ:AAPL) stock plunges and equity markets remain in limbo
VIX ETFs and the VIX Index continue to scrape along bottom as investors wait for equity markets to take a direction. The VIX Index rose 1.85% to close at 12.69 while the iPath S&P 500 VIX Short Term Futures ETN (NYSEARCA:VXX) rose .57% and the VelocityShares Inverse VIX ETN (NYSEARCA:XIV) lost .57%.
From a fundamental perspective, the VIX Index and VIX ETFs continue to tread water alongside equity markets, despite the fact that Netflix (NASDAQ:NFLX) rose 42% today and Apple (NASDAQ:AAPL) has lost over 30% since its peak. These wild swings in individual stocks underscore the notion that investors are waiting for a more decisive breakthrough in major equity market indexes (S&P, NASDAQ), as these indexes face enormous resistance. As a result equity market resistance levels, the VIX and VIX ETFs have been neutralized. If indeed the bulls break through and the S&P 500 and NASDAQ reach new highs, then the VIX will likely decline further.
Technically speaking, the VIX and VIX ETFs appear to still be bearish, with some signs of leveling out. The iPath S&P 500 VIX Short Term Futures ETN (NYSEARCA:VXX) has an oversold RSI of 26.63 despite a negative -.413 MACD, so this VIX ETF will likely snap out of its funk soon, as an oversold ETF usually does. The VIX Index has a flat RSI of ’37.31′ and a MACD which appears to be leveling out, so a rise in the VIX Index may be eminent.
VIX ETF Update:
Volatility Index – New Methodology (VIX): Index: 12.69, +1.85%
iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX): +.57%, This ETN is designed to track volatility in the markets as measured by the Chicago Board Options Exchange Market Volatility Index (CBOE Index), a popular measure of the implied volatility of S&P 500 index options. The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets. The iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) prices itself off of the average and implied volatility of the first two months of futures contracts of the S&P 500 Index.
VelocityShares Daily 2X VIX Short-Term ETN (NYSEARCA:TVIX): +1.92%, This ETN is designed to track 2X return on volatility in the markets as measured by the S&P 500 VIX Short-Term Futures Index. The S&P 500 VIX Short-Term Futures Index measures the volatility of the S&P 500 Index via futures contracts as traded on the CBOE. The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.
iPath S&P 500 VIX Mid-Term Futures ETN (NYSEARCA:VXZ): +.18%, This ETN is designed to track volatility in the markets as measured by the CBOE Volatility Index futures contracts. The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets. The iPath S&P 500 VIX Mid-Term Futures ETN (NYSEARCA:VXZ) is priced from the average volatility of the 4th through 7th month futures contracts of the S&P 500 Index as traded on the CBOE.
S&P 500 Dynamic VIX ETN (NYSEARCA:XVZ): +.07%, This ETN is designed to track volatility in the markets as measured by the S&P 500 Dynamic VIX Futures Total Return Index. The S&P 500 Dynamic VIX Futures Total Return Index seeks to combine results of volatility of the S&P 500VIX Short-Term Futures Index Excess Return and the S&P 500 VIX Mid-Term Futures Index Excess Return to create an accurate market volatility reading, as measured by the CBOE. The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.
Velocity Shares Daily Inverse VIX Short-Term ETN (NYSEARCA:XIV): -.57%, This ETN is designed to inversely track the volatility in the markets as measured by the S&P 500 VIX Short-Term Futures Index. The S&P 500 VIX Short-Term Futures Index measures the volatility of the S&P 500 Index via futures contracts traded on the CBOE. The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.
Bottom Line: VIX ETFs and the VIX Index continue to scrape along the bottom as investors try to rally ahead of resistance levels. Sooner or later, a direction will be set.
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Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector's Disclaimer, Terms of Use, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.
