CBOE VIX Volatility Index declines for fifth time in six days.
The CBOE VIX (NYSEARCA:VXX) was back on the defensive Thursday, falling for the fifth time in six days as stocks regained their composure.
The Chicago Board Options Exchange (CBOE) Volatility Index declined 6.5% to 12.72. The so-called “fear index” remains in a protracted downtrend based on the short-term technical indicators, which suggests that stocks are poised to continue higher.
Equities traded firmly higher on Thursday, with the S&P 500 Index (NYSEARCA:SPY) gaining 0.9%.
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 3.8%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY advanced 1.8%.
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 5.1%.
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 6.2%.
The Final Word: Volatility is trekking lower amid the summer doldrums. Investors are eyeing further weakness in Vol now that earnings season is underway.