The VIX Index itself has now spent 16 consecutive trading sessions below its 50 day moving average, and incredibly was around these levels this time last year, before sharply rising as high as $48 by August. [Volatility ETFs Slip as Fear Recedes]
Being that there is not a portfolio manager in the ETF space out there that fails to remember last August through October’s momentous decline and volatility shock that occurred, we would not be surprised to see some upside action in the VIX (and reciprocal action in VIX related ETPs) in the short term as the month of August approaches.
Clearly, a “risk on” appetite does seem to exist among institutional managers toward equities right now, with indices challenging recent highs, but the appeal to simply “hedge” or “lock in gains” at current levels may very well be there for some, especially those whom are consciously and closely monitoring developments and signals coming from the VIX itself.
iPath S&P 500 VIX Short Term Futures ETN
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