Speculators (a.k.a., ‘dumb money’?) are holding their largest net-short position in the history of the VIX futures contract.
Every week, the CFTC releases their Commitment Of Traders (COT) report on the collective positioning among major futures players. Like most market data, the majority of the time, we do not find the COT report on a particular contract to be of much use. However, we do make it a habit to note any extremes in trader positioning as the data can be quite enlightening at such junctures. For example, this morning we released our Chart Of The Day on Twitter and Stocktwits noting the record net-short position among Speculators in VIX futures. This can be helpful since these Speculators are notoriously off-sides at extremes.
This post was published at Zero Hedge on Jan 31, 2017.