CBOE VIX Volatility Index records back-to-back gains to start week.
The CBOE VIX (NYSEARCA:VXX) rose on Tuesday, as stocks faced brisk declines ahead of Q1 earnings season.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the “fear index,” rose 7% to 14.10. VIX remains in the domain of the bears after the 50-day moving average crossed below the 200-day moving average last week.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) decline 0.6%.
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 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 advanced 5.2%.
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 5.8%.
The Final Word: With stocks nearing record highs, some investors are becoming more concerned that the market is extremely overvalued. For the S&P 500 Index, anything above 2,800 implies that per-share earnings are 16.5 times forward-earnings.