CBOE VIX Volatility Index rises as stock-rally fizzeles.
The CBOE VIX (NYSEARCA:VXX) headed higher on Wednesday, as Wall Street reversed course following the Fed’s decision to raise interest rayes.
The Chicago Board Options Exchange (CBOE) Volatility Index continues to hold well below the historic average. It rose 4% on Wednesday to 12.92 on a mean reverting scale of 1-100. The ultra-low VIX reading signals underlying complacency in the market.
In stocks, the S&P 500 Index (NYSEARCA:SPY) declined 0.3% on Wednesday.
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 1.1%.
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 0.5%
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 1.6%.
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 advanced 2.1%.
The Final Word: After a rocky first week of September, stocks are on track for a solid month of gains highlighted by multiple record highs for the S&P 500 and Dow. Markets will soon enter the most prosperous stretch of the year, which means further gains are likely.