(UVIX) 2x Long VIX Futures - Ratings and Ratios

The 2x Long VIX Futures ETF (BATS:UVIX) is designed to provide double the daily return of the VIX futures index, which tracks the performance of a portfolio of long positions in first and second month VIX futures contracts. This means that UVIX aims to amplify the gains (or losses) from the daily movements of the VIX futures index, making it a highly speculative investment.

UVIX achieves this by maintaining a consistent time to maturity of the futures contracts through daily rebalancing, effectively rolling the portfolio to keep it aligned with the underlying index. The index value is calculated daily at 4:00 p.m. (Eastern time) based on the average price of the futures contracts between 3:45 p.m. and 4:00 p.m. (Eastern time), providing a snapshot of the markets expectation of future volatility.

As a Trading--Leveraged Equity ETF, UVIX is not suitable for long-term investors due to its leveraged nature and the inherent risks associated with VIX futures. The funds Assets Under Management (AUM) stand at $218.04M USD, indicating a moderate level of investor interest.

From a technical standpoint, UVIX is currently trading at $28.19, significantly below its 20-day, 50-day, and 200-day Simple Moving Averages (SMA) of $46.07, $45.20, and $44.40, respectively. This suggests a strong downtrend. The Average True Range (ATR) is $12.32, representing a 43.72% volatility, which is substantial. Given the current price action and the fact that its near the 52-week low of $26.21, a potential support level, we can anticipate a possible bounce or consolidation. However, the presence of resistance at $37.2 could cap any potential upside.

Forecasting UVIXs future performance involves analyzing both technical and fundamental data. Technically, a break above the $37.2 resistance could signal a potential uptrend, but the current downtrend and high volatility (as indicated by the ATR) suggest caution. Fundamentally, the VIX futures index is influenced by market volatility and investor sentiment. If market conditions become more turbulent, VIX futures could rise, potentially benefiting UVIX. However, its leveraged nature means that it could also amplify losses if volatility decreases. Given the current technical indicators and assuming no significant shift in market volatility, UVIX may continue to face downward pressure, potentially testing its 52-week low. A more precise forecast would require a detailed analysis of market conditions and volatility expectations.