CBOE VIX Volatility Index rises as trade-war risks resurface.
The CBOE VIX (NYSEARCA:VXX) rose sharply on Thursday, as stocks resumed their selloff following the arrest of a senior Huawei executive.
The Chicago Board Options Exchange (CBOE) Volatility Index traded above 25.00 through the intraday session, pushing it well above the historic average. It would eventually settle at 21.57, gaining 4%. The so-called “fear index” experienced an even bigger spike on Tuesday as stocks fell 3%. The RSI and MACD show renewed momentum for the VIX over the next 30 days.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) fell 0.2% on Thursday.
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 2.2%
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 2%.
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 3.3%.
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 4.4%.
- The Final Word: Volatility is back with a vengeance, and this is clearly observed by looking at stock prices. The S&P 500 and Dow have erased their gains for the year as concerns over the trade outlook continue to mount.