The recent political developments, including President Trump's executive orders, have led to a mixed reaction in the markets. While equities have surged, the VIX has shown a slight uptick, indicating a cautious stance among traders. The market's current environment, characterized by reduced uncertainty, has fostered stock price appreciation. However, the absence of significant catalysts and elevated realized volatility suggest that the rally may be losing steam. Traders are increasingly hedging their positions, signaling a potential pause in the upward momentum.
The VS TR -1x Short VIX Futures ETF (SVIX) has experienced a decline, dropping 1.48% to $26.62 as of 14:00 on Wednesday, January 22.