Long XIV @ 20.50
- VIX futures are back in contango (currently 4.5% from F1 to F2)
- SPY broke through resistance validating double bottom (see chart below). Although there are some upcoming resistance, SPY has momentum behind it. My assumption is VIX futures will remain in contango as a result.
- Since 1/20 SPY has increased ~9.6% where as XIV has...
Despite briefly dipping below 12, based on this chart interpretation the VIX is still poised for a rather large spike this summer. First trigger would be a move over ~14 then a push through major resistance ~19.50 - 20 would probably see a rapid ramp towards the low 30's.
This would roughly correlate to a 20-30% correction in the SPX.
Watch to see if the VIX can...