CBOE VIX Volatility Index heads higher as stocks struggle for direction.
The CBOE VIX (NYSEARCA:VXX) rose again on Tuesday, as stock markets struggled to shake off recent tumult.
The Chicago Board Options Exchange (CBOE) Volatility Index rose 2.3% to 16.06, where it is seen as bullish according to the short-term momentum charts. The latest surge in volatility has the VIX approaching its long-run average, which is closer to 20.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.1% on Tuesday.
Major VIX ETFs:
iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA:VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second month VIX Futures contracts. VXX advanced 1.8%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY declined 0.7%.
ProShares Ultra Short Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (leveraged) returns of the day’s moves in the S&P 500 VIX Short Term Futures Index. It tacks the two front months of the futures contract. UVXY advanced 2.7%.
VelocityShares Daily 2x VIX Short Term Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX advanced 3.3%.
The Final Word: Volatility has made a strong comeback over the past week. Rising bond yields, overvaluation risks and growing instability in China all pose risks for Wall Street.