The Extreme Net-Short Positioning On The Volatility Index – Chart Of The Day
The extreme net-short positioning on the volatility index suggests there will be a rapid unwinding of positions given the right catalyst. As you will note, reversals of net-short VIX positioning has previously resulted in short to intermediate term declines.
On the flip side and as was outlined in our weekly update, commercial (smart money) VIX long interest is approaching record levels. Now at 115K contracts net long.