Things going to get interesting First off, I'm worried that there is so much VIX lag. If everyone is buying insurance for S&P, and S&P continues to soar, those options will expire and VIX/HVU will get hammered without a dime move in the S&P. However, the fact that so many people are becoming worried is a great sign of what's to come.
MOST INTERESTING, is the dynamics of the market right now. I agree with people who say "when everyone expects a pullback, the pullback won't come", I also agree with mainstream people who say "If everyone is ready to sell in May, the May pullback won't come".
However, there is ONE thing the media, mainstream investors and even a majority of the bears on this board have overlooked among all the commotion:
The reimposing of the debt ceiling on May 19.
After all, it's basically this issue that was the leading cause of the recent bull run, not QE infinity. QE has been going since September. Yes they doubled the asset purchases in December, but it was the avoiding of the "fiscal cliff" in January that caused this bull run, and one of the leading solutions was to raise the debt ceiling.
The entire market has forgotten this. This will be cause of the steep coming correction (not crash, just a 5-10% sharp drop, maybe 15%). The fact that everyone has overlooked it with May 19 barely 2 weeks away is excellent evidence of a blindsided panic drop to the market.
Which will be huge for HVU.
This is not professional advice or a recommendation to buy. Only my opinion. Make your own calls, assume your own risk.