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"Hyper-optimism has returned to the stock market," writes Steve Sears, noting the sharp recent...

"Hyper-optimism has returned to the stock market," writes Steve Sears, noting the sharp recent decline (26% in a week) in the VIX (VXX) has brought it just about to levels associated with bull markets. He finds it disturbing as the move is seemingly not tied to economic fundamentals, but the hopium of easier central bank policy.
Comments (14)
  • idkmybffjill
    , contributor
    Comments (1575) | Send Message
     
    Yes, glad someone is finally making this astute observation.
    20 Jun 2012, 12:25 PM Reply Like
  • Tack
    , contributor
    Comments (12964) | Send Message
     
    Yes, optimism is always "disturbing" to some.
    20 Jun 2012, 12:25 PM Reply Like
  • moneytreetrading
    , contributor
    Comments (19) | Send Message
     
    ETN like this and TVIX are just betting platforms. Since there is no correlation to the performance of the stock market-this is just gambling .

     

    Pump up TVIX so I can rake more money!
    20 Jun 2012, 12:50 PM Reply Like
  • ravalraj
    , contributor
    Comments (14) | Send Message
     
    makes no sense why VXX keeps falling. The world is in debt and just keep borrowing, so how is there no market fear? AM I missing some fundamental flaw with this ETN?
    20 Jun 2012, 04:32 PM Reply Like
  • SkillTrade
    , contributor
    Comments (9) | Send Message
     
    I never realized how gullible the market can be until this hopium rally!
    20 Jun 2012, 05:06 PM Reply Like
  • Backwardation
    , contributor
    Comments (5) | Send Message
     
    It would appear that the VXX model has had a variable that's been tweaked outside it's parameter norms. Let's wait until Thursday news regarding Spain's borrowing needs to confirm.....
    21 Jun 2012, 01:30 AM Reply Like
  • glssmrbl
    , contributor
    Comments (322) | Send Message
     
    Time for VXX to move like we expect.
    21 Jun 2012, 04:30 PM Reply Like
  • DominicS
    , contributor
    Comments (3) | Send Message
     
    Anyone know why UVXY is down 20% when the VIX is down 10%? Is UVXY collapsing as TVIX did a dew months ago?

     

    Thanks
    22 Jun 2012, 04:27 PM Reply Like
  • glssmrbl
    , contributor
    Comments (322) | Send Message
     
    UVXY replicates twice the return of the S&P VIX.
    22 Jun 2012, 04:37 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1575) | Send Message
     
    UVXY follows VIX futures leveraged x2.
    25 Jun 2012, 11:39 AM Reply Like
  • vision3001
    , contributor
    Comments (211) | Send Message
     
    1. On 9 March 2012,
    VIX = $17.11
    UVXY = $29.29

     

    4. Fast forward today, 30 Jun 2012,
    VIX = $17.08 (percentage change = -0.2%)
    UVXY = $9.84 (percentage change = -66%)

     

    5. It is true that if VIX goes higher from here to $20, and higher $25, and higher above $30, a handsome return on UVXY is definite.

     

    6. However, when VIX continue to go sideway, products like UVXY and TVIX will continue to degrade further, hitting further new lows.
    30 Jun 2012, 04:10 AM Reply Like
  • DominicS
    , contributor
    Comments (3) | Send Message
     
    UVXY -66% vs VIX -.2% is an unbelievable disproportionate relationship. Will UVXY ever re-gain equilibrium with VIX?
    4 Jul 2012, 11:36 AM Reply Like
  • vision3001
    , contributor
    Comments (211) | Send Message
     
    >Will UVXY ever re-gain equilibrium with VIX?

     

    If we have a long period of overly extended bear market, there will be a crossover, but don't hold on to UVXY till that happen.
    4 Jul 2012, 09:34 PM Reply Like
  • DominicS
    , contributor
    Comments (3) | Send Message
     
    Thanks.
    5 Jul 2012, 09:49 AM Reply Like
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