Both the S&P 500 and NASDAQ-100 were up slightly last week and both VIX and VXN were up as well. That is where the similarity between VIX and VXN action ends. Despite a higher VIX, all VIX futures contracts were lower on the week. It appears that risk farther out on the curve is finally coming in. Every single VIX futures contract settled Friday under 20.00. If I had an intern I would have him digging through data to figure out when that last happened.
VXN was the strongest of the equity market related volatility indexes rising 1.80% on the week. The curve action left me scratching my head with February much weaker, March and April trading higher, and May trading down.
Remember next week is February VIX expiration so there are only two more days to participate in Feb VIX and VXN trading. Then it is on to March.