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Actionable news in XIV: VELOCITYSHARES DAILY INVERSE VIX SHORT TERM ETN,

VIX Options Activity Signals Possible Volatility Spike

Submitted by Elizabeth Harrow via SchaeffersResearch.com,

This week, we present to you one of those interesting data discoveries that occasionally crops up in the course of our routine study of various technical and sentiment indicators. In the process of composing his weekly report to our research team, Schaeffer's Quantitative Analyst Chris Prybal noted an apparent correlation between CBOE Volatility Index (VIX) futures put option volume and the action in the S&P 500 Index (SPX). Namely, per the chart immediately below, it would seem that when VIX's 20-day cumulative put volume falls below 400,000 contracts, the S&P tends to experience some weakness.

While VIX 20-day put volume regularly clocked in below the 400,000 threshold prior to 2013, there have been only 10 occasions since then when...

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