Looking To Play A Volatility Increase Ahead Of The Fed's Rate Decision? This ETF Offers 1.5X Leverage
Portfolio Pulse from Melanie Schaffer
Ahead of the Federal Reserve's monthly meeting, the Convexity Daily 1.5x SPIKES Futures ETF (SPKY) is falling under support near the $5 level. SPKY is a 1.5x leveraged fund that follows the SPIKES Futures Short-Term Index, similar to the ProShares Ultra VIX Short Term Futures ETF (UVXY). With an anticipated 0.25% rate hike, volatility in the stock market could surge, potentially driving SPKY higher. However, SPKY has been declining over the last three trading days, suggesting lower prices could come again.
July 24, 2023 | 7:27 pm
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NEUTRAL IMPACT
UVXY, similar to SPKY, tracks the S&P 500 VIX Short-Term Futures Index. The anticipated rate hike could increase market volatility, potentially impacting UVXY.
UVXY, similar to SPKY, could be impacted by the anticipated rate hike. The increase in market volatility could potentially affect UVXY, although the article does not provide specific details about its performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
SPKY is falling under support near the $5 level. With an anticipated 0.25% rate hike, volatility in the stock market could surge, potentially driving SPKY higher. However, SPKY has been declining over the last three trading days, suggesting lower prices could come again.
The anticipated rate hike by the Federal Reserve could increase market volatility, which could potentially drive SPKY higher. However, the ETF has been on a declining trend, suggesting that the price could continue to fall in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100