VIX ETFs In Holding Pattern

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VIX ETFs hold steady and wait for next move (over fiscal cliff?)

fear girl1 VIX ETFs In Holding PatternVIX ETFs held steady today despite equity market improvement and an enormous drop yesterday.  Despite the looming fiscal cliff which would surely force loads of fear into the marketplace, the VIX Index lost .18% to close at 16.65, while the iPath S&P 500 VIX Short Term ETN (NYSEARCA:VXX) added .17% and the VelocityShares Inverse VIX ETN (NYSEARCA:XIV) stayed put with 0.0% movement.

VIX ETFs and the VIX Index will likely stay in holding patterns until more information surfaces about the upcoming fiscal cliff, which is now just 48 days away.  With US elections come and gone and a firm idea of just how much more gridlock is likely to occur, investors were chalk full of fear last week and will likely be chalk full of fear again soon until the fiscal cliff drama is addressed.

Even so, from a technical standpoint, the VIX Index epic 10% crash yesterday shows just how little support the VIX has right now to sustain levels higher than its 200 Moving Day Average.  Furthermore, the VIX Index and VIX ETFs continue to consolidate and move sideways; with RSI’s hovering around the ’50′ mark, it is clear for now at least that investors are simply waiting to get scared.

VIX ETF Update: 

Volatility Index – New Methodology (VIX): Index: 16.65, -.18%

iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX): +.17%, This ETN is designed to track volatility in the markets as measured by the Chicago Board Options Exchange Market Volatility Index (CBOE Index), a popular measure of the implied volatility of S&P 500 index options.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.  The iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) prices itself off of the average and implied volatility of the first two months of futures contracts of the S&P 500 Index.

VelocityShares Daily 2X VIX Short-Term ETN (NYSEARCA:TVIX): +.76%, This ETN is designed to track 2X return on volatility in the markets as measured by the S&P 500 VIX Short-Term Futures Index.  The S&P 500 VIX Short-Term Futures Index measures the volatility of the S&P 500 Index via futures contracts as traded on the CBOE.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.

iPath S&P 500 VIX Mid-Term Futures ETN (NYSEARCA:VXZ): +.35%, This ETN is designed to track volatility in the markets as measured by the CBOE Volatility Index futures contracts.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.  The iPath S&P 500 VIX Mid-Term Futures ETN (NYSEARCA:VXZ) is priced from the average volatility of the 4th through 7th month futures contracts of the S&P 500 Index as traded on the CBOE.

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