AMEX:VXX IPATH S&P 500 VIX SHORT-TERM FUTURES ETN
Hedge fund mangers play the vix and the vxx as a hedge, of course, and you better believe they are playing it now, especially if they don't want to set off a panic buy selling , and they don't want to do that... if this market is heading down, they want an easy down trend so they can pump and dump. However, this time, they and Yellen may not have control, since China has started a war, and this is no A CURRENCY WAR. The USA is the only one left standing, and everybody knows it. We may have just become the sacrificial lamb. Our economy cannot support the world, and unless we close our borders, stop all international trade, etc. etc, (which may happen by default if we cannot stop deflation - which we cannot) and only use our oil produced stuff, oil , food, the rest of the world will be the anchor that drags the boat under water. (I've heard many analyst saying lately, buy companies that deal only with the US borders, for good reason, this reason. So the DOW may suffer worst than the IWM . Hedge funds are using options to leverage because they are CHASING YIELD LIKE NEVER BEFORE. And they are still, if you can believe it, believing in this , in denial, and refusing to sell, OK so they hold and by the VXX as a hedge as insurance, and I play them as well as the markets by buying what they buy, sure it is at a premium now (however I bought cheap before this happened). The red vertical lines in the future are options expiration dates for August, Sept, and Oct . There will be even higher vol leading up to those dates. This is a risky play, to play with the big money like this, during times where anything can happen, so if you go here, be sure to watch your stuff hourly. Watching the option volumes is just amazing right now, so the premiums just went through the roof. IMO: don't bet against the high open interest and daily buys especially. If you put the vix on a weekly, you will see the bases, see my previous charts, before the spikes, and see the relation to bases and spike maginitudes.