The VIX futures curve (F1-F2) was in backwardation unitl the April contract expired on the 18th. However, backwardation has continued to try to creep into the futures curve, and the current F1-F2 terms have already found themselves in backwardation, although not consistently.
Again, this does not mean pile money into VIXY, but it does raise concerns for people who have been expecting to be able to continue to profit off of XIV.
Below is a chart of $ES, along with the extended risk appetite index (eRAI) and VIX between December 1st, 2016 through the current values today. Risk appetite dropped considerably yesterday, while the VIX rose by a fair margin. The eRAI has been on a more or less downward trend since the middle of March.
I am long VIXY and RWM, and generally hold bearish positions such as SH, DOG, etc.
The S&P 500 has been staying above the 2350 support level for a while, This has pushed the index outside of its downward trading channel. Meanwhile, volatility has increased at a reasonable pace.« Continue »
I have written a few articles about marijuana stocks. This article is an update on marijuana related legislation and past stock selections, as well as a quick discussion on one new selection for my watch list.« Continue »