The latest CFTC Commitments of Traders report indicates a significant rise in speculative short positions in the VIX, suggesting a reduced demand for volatility protection among investors. This trend reflects growing confidence in market stability, as traders seem less worried about potential disruptions. The report also highlights substantial short positions in currencies like EUR, CAD, and NZD, pointing to expectations of a stronger USD. Meanwhile, net buying in equity indices such as the SPX and Russell suggests positive sentiment towards equity market performance. In the fixed income sector, net buying of longer-duration bonds indicates expectations of decreasing yields, while short-covering in SOFR suggests potential stabilization in short-term interest rates.
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) experienced a slight increase, closing at $42.48, up 0.02% from its previous close of $42.47, as of 16:00 on Friday, December 13.