Volatility Sharply Increases Following Fed Minutes, This ETF Offers 1.5X Leverage
Portfolio Pulse from Melanie Schaffer
The Convexity Daily 1.5x SPIKES Futures ETF (SPKY) was consolidating over 5% lower after surging about 11% on Thursday. 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). Following the Federal Reserve’s decision to apply a 0.25% rate hike, the SPDR S&P 500 (SPY) dropped 1.42% of its high-of-day on Thursday. On Friday, the SPY and SPKY were consolidating with inside bar patterns on lower-than-average volume.
July 28, 2023 | 4:09 pm
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NEGATIVE IMPACT
SPY dropped after the Federal Reserve's rate hike decision, indicating potential negative impact.
SPY's price dropped after the Federal Reserve's decision to hike rates. This indicates a potential negative impact on its short-term price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
SPKY was consolidating after a surge, indicating potential volatility. It is a leveraged fund and thus carries higher risk.
SPKY's price movement is directly tied to the SPIKES Futures Short-Term Index. The ETF's recent consolidation after a surge indicates potential volatility, which could impact its short-term price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90