The ratio of $VIX: 3M VIX is in steep contango, closing .80 on Friday [1] and dropping clues to the next market moves. Historically when contango has been this steep, $VIX has gone⬆️over the following month by 15% Vs. anytime $VIX returns* of 3% [2] ~Super~ Bearish right? 
*Sorry if $VIX % Returns make you mad.
Over the following month $VIX ended higher 75.9% of the time. So what did $VIX futures do...
$VXX returned on average -5.27% during the same time period compared to it's anytime return of -3.55%. Contango at work.
Over the following month $VIX ended higher 75.9% of the time. So what did $VIX futures do...
$VXX returned on average -5.27% during the same time period compared to it's anytime return of -3.55%. Contango at work.
And how about the S&P500 ETF $SPY?
It was consistently some of the least volatile action over the following 1 month compared the anytime $SPY returns.
So if you were looking to get all bear'd up, you might have to look elsewhere!
It was consistently some of the least volatile action over the following 1 month compared the anytime $SPY returns.
So if you were looking to get all bear'd up, you might have to look elsewhere!
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