Kindof meaningless. Look what normally happens when XIV has a death cross. And of course I'm not talking about October.
Count on it. GLTA I'd like to see S&P 2120 before touching this again. And if we blow through that level without a pause, 2200 will be next before a significant pullback.
What you just said makes no sense at all. They aren't inverse ETNs, they aren't even run by the same company. Why would a particular value like VXX at $30 have any significance to XIV. Now if you want a non-snotty answer we just came off a big dip in XIV and it's certainly not going to jump back to it's level it was at when VXX was at $30. If volatility stays low you'll see XIV climb back to 42 and VXX continue lower. They still won't be correlated at any particular value of either ETN.
It might get killed by decay if the VIX is relatively high. But not if it's relatively low. And over the long term I have to agree with brian. The only time this is painful is when the VIX spikes, like last week. You can see quite a big drop in very little time. (Good time to buy though, as long as the market recovers). If the market truly turns bearish, this will not be the place to be.
The return on XIV is linked to the inverse of the daily performance of the S&P 500 VIX Short-Term Futures™ Index ER less the investor fee. The ETNs provide traders with an exchange traded instrument enabling them to efficiently express their market views on the short-term futures contracts on the CBOE SPX Volatility Index® (the “VIX®”). Note: "on the short-term futures contracts on the VIX". NOT "the VIX" itself.
How in the hell do you calculate that? If you had $200 worth and it doubled every year you'd have $100,000. Not $1,000,000.