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Chart Of The Day | Sep 8 2015 | HF VIX Positions Suggest Volatility Is Not Over Yet

Sep. 08, 2015 10:01 AM ETSPY, IVV, XIV, VIXX, VIXY, VIXM
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Sell-off and volatility are not over yet

A few days ago JP Morgan's strategist Marko Kolanovic stated that the selloff will probably continue in the next one to three weeks as HFT and algorithmically based traders get rid of $100B in stocks.

Today the U.S. Commodity Futures Trading Commission released hedge fund's positioning in VIX future, presented in the chart below. The information reveals a peak in HF VIX futures positions that reflects HF industry estimation of continued volatility.

Combining the two sources, it would be fair to assume that sell-off and volatility are not over in spite of the recent rebound in stock prices.

As market stability is still unclear, investors should not reduce their portfolio protections yet.

A further read on portfolio protection is available on: "Protecting A Tech Portfolio During The Turmoil".

Analyst's Disclosure: I am/we are long SPY.

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