CBOE VIX Volatility edges lower for second consecutive day.
The CBOE VIX (NYSEARCA:VXX) held lower on Thursday, even as stocks struggled to extend their post-FOMC rally.
The Chicago Board Options Exchange (CBOE) Volatility Index fell 3.6% to close at 11.2. It was the index’s fourth decline in the last five days, erasing any semblance of momentum for the volatility gauge. Relative strength has drifted back below 50, while the MACD is holding just above zero.
The large-cap S&P 500 Index (NYSEARCA:SPY) weakened 0.2% on Thursday.
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 declined 2.1%.
VelocityShares Daily Inverse VIX Short Term Futures ETN: (NYSEARCA:XIV) Designed to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. XIV advanced 2%.
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 declined 4.1%..
VelocityShares Daily Short Term VIX 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 declined 4%.
The Final Word: A Fed rate hike has failed to trigger volatility, a sign investors were growing more comfortable with the economic recovery. The FOMC is expected to raise interest rates two more times this year as it brings monetary policy back toward normalcy.