CBOE VIX Volatility Index falls on Tuesday as stocks continue higher.
The CBOE VIX (NYSEARCA:VXX) continued to backtrack from two-month highs on Tuesday, as energy and technology stocks lifted Wall Street’s major indexes.
The Chicago Board Options Exchange (CBOE) Volatility Index fell 5.9% to close at 13.32 on a scale of 1-100 where 20 represents the historic average. The so-called “fear gauge” is losing momentum after the relative strength index broke above 60 last week.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.4% on Tuesday.
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 2.9%.
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 1.7%.
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 4.7%.
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 5.6%.
The Final Word: Volatility is receding once again as growth optimism continues to fuel investor sentiment. Inflation, GDP and jobs are all headed in the right direction, according to the latest economic figures.