CBOE VIX Volatility Index resumes downtrend, settling at new monthly lows.
The CBOE VIX (NYSEARCA:VXX) declined on Friday, booking its third straight loss to settle at its lowest level in over a month.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, fell 7.6% to 15.03 on a scale of 1-100 where 20-25 represents the historic average. The so-called “fear index” has been in free-fall this week, as stocks snapped back to health on U.S.-China trade talks.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) advanced 0.1% on Friday.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY advanced 1.4%.
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 4.6%.
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 declined 5.5%.
The Final Word: The CBOE fear index took a beating this week, as investors bought the rumor of U.S.-China trade talks. Given how negotiations have gone, traders will find themselves selling the fact in early October if both sides fail to make progress.