With the move down in the S&P 500 and the move up in the VIX, this chart is showing some severe stress is occurring. I'm still long TLT and XLP, and I think I won't be long the major indexes for quite some time, but I might short the VXX when the time is right (which is not now).
One of the major reasons why I think the major indexes are falling is because the treasuries got bashed down to levels in which the valuation concerns for stocks got magnified with interest rates being elevated. TLT is probably getting major inflows now. XLP is also an interest rate sensitive ETF that does well with falling rates.
Edited by Charvo, 12 April 2017 - 06:19 PM.
