Analyst Paul Weisbruch of Street One Financial brings investors his daily fund flows update, which today looks at a long-awaited bounce in a volatility-based fund, as well as some trader hesitancy in gold miners.
VXX Finally Perks Up
With equities re-tracing today (and once again we see the SPX failing to pierce through what seems like real resistance up at 2277-2278), the VIX is actually up 10% in morning trading. “Long Volatility” ETPs, however, are still suffering from the negative effects of contango in the futures markets, as VXX for example is only up about 3%.
We note that VXX traded at an all-time low, yet again, just yesterday. In the trailing one month period, VXX has seen some outflows, to the tune of about $56 million out, but largely it has collected new assets in the trailing one year period in spite of disappointing performance.
The iPath S&P 500 VIX Short Term Futures TM ETN (NYSE:VXX) was trading at $22.20 per share on Thursday morning, up $0.76 (+3.54%). Year-to-date, VXX has declined -12.98%, versus a +0.85% rise in the benchmark S&P 500 index during the same period.
Gold Miner Downside Bets Seen
In other activity, we have seen some hesitation in the Gold Miners amid their recent run up from mid-December lows, expressed in the options market. The March 21.50 puts in GDX traded in good size (>97,000) times this week, although we note that GDX is up >1.5% today, and flirting with its highest levels since November.
The Market Vectors Gold Miners ETF (NYSE:GDX) was trading at $22.97 per share on Thursday morning, up $0.40 (+1.77%). Year-to-date, GDX has gained 9.80%, versus a 0.86% rise in the benchmark S&P 500 index during the same period.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.