RECORD! XIV etn up 9 months in a row for the first time ever!
The incredible streak in the XIV short volatility ETN has continued! It's now finished higher for a 9th month in a row! XIV is up more than +185% during this 9 month streak! Times are good in short volatility land, but will that last? Lets take a look!
First, the VIX itself is on its own remarkable streak. It hasn't traded above 20 for 182 consecutive trading sessions. This has eclipsed the 2014 streak of 171! While this streak can continue for longer than anyone thinks, something tells me that it could end before this year is over. (See chart below)
Second, the sister ETF of XIV, has the one of its highest monthly RSI readings in its history! Is this a good time to go long? (See chart below)
Third, the returns in XIV since the election are pretty impressive. It's up about +186% since the election! Impressive returns for sure. Can it continue? Sure, but I would think the returns going forward may revert to the mean. (See chart below)
Life is good in short volatility land right now. Experience tells me that this tranquil market simply cannot last. The longer this low volatility goes, the bigger the spike on the other side of this will be.
Thank you for reading!
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