Based on Reuters data processed until now: Tracked Funds sold yesterday 0.85Bn USD in US Equities. Most of that cash went to money market, not bonds.
On the other hand, SP500 Index Funds and Large-Cap Core Funds experienced inflows (at todays close I will have more data). The analysis of this data weekly data its key for R Option macro positioning.
So far the NDX and SPX are trading above overnight lows which helps that system’s current positions. This might change in the future, but today sellers at being matched by the buyers.
I believe that VIX will not trade lower as fast as it traded higher. Allow me a couple days to process more and new information. I need to review puts & calls ratios over many expirations.
After 2:30 pm EST yesterday, we saw large hedging trades on VIX products, those were professionals hedging. If they were so aggressive to take the VIX from 14 to 15.5 in 2 hours, they are not likely to close those positions soon.
I expect them to be right, hedging at his levels may pay them because they have long term positions.
Around Aug 15th, if we do not print lower than the overnight low in SP500, the VIX could be reprice lower.
