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VIX Daily Update: Volatility Dips as Stocks Surge to Record Highs

With S&P 500 at record highs, volatility shows no signs of returning anytime soon.

The CBOE VIX (NYSEARCA:VXX) held lower on Tuesday, as stocks mounted an impressive rally on the back of better than expected corporate profits.

The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the fear gauge, reached a session low of 12.17 on Tuesday. It would later settle at 12.30, having declined 1%.

In stocks, the S&P 500 Index (NYSEARCA:SPY) gained 0.9%.

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 0.4%.

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 1.5%. 

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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 2%. 

The Final Word: Volatility continues to hang well below the historic average, although that may soon change as investors cycle out of stocks during the summer months. Investors should be weary of the adage ‘sell in May and go away’ as it could certainly ring true next month.