As you can see in the following chart, the ProShares Ultra VIX Short-Term Futures ETF (UVXY) has continued downwards during the month with shares erasing most of the gains seen earlier this summer.
At present, I have two different views on UVXY. In the short term, I believe that we’re likely going to see some upside in the instrument in line with seasonal tendencies in the VIX. In the long term, however, I believe that we are almost certainly going to see UVXY head lower.
To kick this piece off, let’s take a broad thematic look at the current VIX levels.
The VIX is sitting around 27 at the time of writing. Over the past month, we have seen a fair degree of volatility in the VIX with the index hitting as high as 38 early September after touching numbers in the low 20s a few days prior.