Could a TVIX (VelocityShares Daily 2x VIX Short-Term ETN) On-Balance-Volume Reversal affect the prices relative to the hedging mechanism?
Prices flattened on the TVIX during the past 16 months and it’s making me wonder; if On-Balance-Volume turns drastically positive (ended 2018 positive 259-mln volume, ended July 2019 -(negative)750-mln volume) will price momentum push the arbitrage-hedging device to distort prices towards the upside rather than the typical downside?
What if this would lead to outsize gains compared to related VIX (S&P 500 Volatility Index) after excess shorts got squeezed and were replaced by excess longs?
My thoughts are; could TVIX gear all the way towards $200 within a 10-year time frame? (14/9/2019 quote $23, Dec 2018 high was $80)