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VelocityShares Daily Inverse VIX Short Term ETN (NYSEARCA:XIV) Experiencing Turbulent Times

Posted in Markets2 years ago • Written by Robin FlemingNo Comments

Dallas, Texas, 09/25/2013 (ustrademedia) – Nothing seems to be going right for VelocityShares Daily Inverse VIX Short Term ETN (NYSEARCA:XIV) as it is currently feeling the wrath of the prolonged recession in the stock market and the recent announcement by FOMC that it was not ready to taper. FOMC is currently cutting back on the buying of bonds something that is affecting the stability of the market. Before the FOMC statement XIV was trading at $14.43 after which it took an abrupt decline to $13.48. The statement has had a major effect on as the share has hit allow time low of $13.26. Investors had earlier anticipated the cutting back of the monthly bond by up to $10 billion by the FOMC something that has not done any good to XIV.

VIX enjoyed its long awaited “golden cross” moment on June 25 which saw its Moving Average reach the 200MA mark. On September 18th its moving average declined from the 14.14 mark at the previous day to a 14.12 mark making VIX close below its 50-day MA for the first time and closing on the 13.59 mark.  The bad times are evident with the fact that XIV is currently floating at about 20% of its historical value distribution.

The turbulent times were even more evident on August 30th for XIV as it was trading below its 200 day MA of 14.59. This is essentially a “death cross” period for XIV as it is experiencing a significant decline .XIV engages in highly volatile investments and has subsequently seen a plunge of its investments by up to 80% this year alone. Although the price shares have considerably declined over the past months, investors interest is still strong a good thing for the long term stability of the company.

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