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Volatility ETPs Once Again Crushed To All-Time Lows

Analyst Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today includes yet another day of VIX-focused ETPs getting crushed, along with a flight away from SPY and into DIA.

S&P Sets The Stage

The S&P 500 (SPX) is once again grinding against 2271 near term resistance this morning, and Market Technician David Chojnacki notes this level as well as 2276 overhead as potential stopping points for any SPX rally here.

VIX ETPs Slaughtered

We do note, however, that the VIX is getting spanked today on the small move higher in equities which is interesting (down more than 2.8%), which means that Long Volatility related ETPs VXX, UVXY and so on are trading at new all-time lows yet again.

VXX in fact has breached $20, today and UVXY recently went through its seventh reverse split since it was listed (a 5:1 reverse split) to prevent it from grinding closer to $0 presumably.

The iPath S&P 500 VIX Short Term Futures TM ETN (NYSE:VXX) was trading at $19.71 per share on Tuesday afternoon, down $0.79 (-3.85%). Year-to-date, VXX has declined -22.74%, versus a 1.75% rise in the benchmark S&P 500 index during the same period.

VXX currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #5 of 10 ETFs in the Volatility ETFs category.

Diamonds Are Forever?

There has been some bloodletting once more in SPY at the resistance levels we have noticed with more than $3.5 billion leaving the fund via redemption flows. On the flipside, Industrials have pulled in more than $800 million via DIA creations lately and it seems correlated to MMM’s earnings release this morning (#2 weighting in the DJIA at 6.15% although the stock is off 1.5% today).

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 108 ETFs in the Large Cap Blend ETFs category.

DIA currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #6 of 77 ETFs in the Large Cap Value ETFs category.

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.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and for instance.

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.

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