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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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
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