How low can the VIX go?
That seems to be the question hedge funds are asking themselves as they continue to bet that the so-called stock market fear gauge will fall further from current near-record-low levels.
Positioning on VIX futures, which allow investors to bet on whether or not the stock market will see big price swings, is now the most bearish on record, according to Commodity Futures Trading Commission data going back to 2004.
And a bet against the VIX generally translates to a bullish wager on the S&P 500, since the VIX and the S&P 500 tend to move in opposite directions. That means investors are the most confident about further gains in stocks than at any point in more than a decade, at least according to this measure.
Source: Business Insider
Junior Trader Stefan Panteleev
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