This Week in VXST – 9/19/2014

A couple of weeks ago (9/12 to be exact) VXST was a tad lower than VIX despite a pretty tough week for the S&P 500. It appeared that VXST relative to VIX indicated a lack of fear and I talked about how the market has been lulled into complacency due to the S&P 500 continuously rebounding from any weakness.  That happened again this week and VXST reacted by putting up a 10 handle before the week was over.

VXST PA 

The VXST curve returned to normal after being a little inverted last week. Forgive the Monday morning quarterback in me, but the inversion could be taken as an indication that the S&P 500 was going to run to new highs.

VXST CURVE

Finally, Vance Harwood has some interest analysis of VXST futures versus VIX in a column that showed the price action of VXST futures relative to VIX along with some analysis of other volatility related instruments –

 

http://sixfigureinvesting.com/2014/09/trading-vxst-futures-etf-etn-etp-vix/