Looking To Trade Stock Market Volatility Ahead Of Fed's September Decision On Rates: This Fund Offers Leverage
Portfolio Pulse from Melanie Schaffer
The ConvexityShares Daily 1x SPIKES Futures ETF (SPKX) fell about 5% on Monday, ahead of key economic data sets that could influence the Federal Reserve's decision on rate hikes next month. The SPKY is a 1.5X leveraged fund that tracks the SPIKES Futures Short-Term Index and measures volatility in a similar way to ProShares Ultra VIX Short Term Futures ETF (UVXY). The market is currently pricing in an 80% probability that the central bank will keep rates steady in September, but a 61% chance of a rate hike in November.
August 29, 2023 | 11:49 am
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SPKX fell about 5% on Monday, potentially due to anticipation of key economic data sets that could influence the Federal Reserve's decision on rate hikes.
The drop in SPKX's price could be due to investors' anticipation of key economic data sets that could influence the Federal Reserve's decision on rate hikes. If the data suggests a rate hike is likely, this could lead to increased market volatility and potentially further declines in SPKX.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
SPKY is a 1.5X leveraged fund that tracks the SPIKES Futures Short-Term Index. It's designed for short-term trades and could see upside if the stock market becomes volatile due to a rate hike.
SPKY's performance is tied to the SPIKES Futures Short-Term Index, which measures market volatility. If the Federal Reserve decides to raise rates, this could lead to increased market volatility and potentially an increase in SPKY's price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
UVXY measures volatility in a similar way to SPKY. It could also see upside if the stock market becomes volatile due to a rate hike.
UVXY's performance is also tied to market volatility. If the Federal Reserve decides to raise rates, this could lead to increased market volatility and potentially an increase in UVXY's price.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50