Risk aversion leads investors out of stocks and into haven assets on Monday.
The CBOE VIX (NYSEARCA:VXX) was back on the offensive Monday, surging double digits as investors dumped stocks in favor of gold and Treasuries.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, peaked at 21.26 on a scale of 1-100 where 20-25 represents the historic average, VIX would eventually settle at 20.43, having gained 13.7%.
Last Monday, VIX surged more than 105% in intraday trading.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) plunged 1.2% on Monday.
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 3.6%.
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 10.8%.
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 14%.
The Final Word: The return of volatility casts a dark shadow over the bull market. The CBOE VIX has pared most of its declines for the year and could be heading a lot higher now that a U.S.-China trade agreement has been priced out of the market.