For the week that ended last Friday (7/16) VIX was down and VXN was up. This past week saw a reversal of this as VXN came back down close to in line with VIX after running up to a premium of over just a point. This dichotomy of performance is the result of the S&P 500 (barely) being the red last week while the NADSAQ 100 rallied to gain over 1% on the back of some decent earnings report from a couple of big components in the index.
VIX rose on the week, but all the futures were lower. Looking out along the VIX curve there was some moderate flattening. I guess every week the S&P 500 doesn’t display some meaningful downside volatility results is less concern about any sort of volatility flare up through the rest of the year. As a fun exercise, and since I’ve been writing these blogs for just over a year I took a look at the VIX curve on the last Friday of 2012 to see how 2012 compares to this year. Those two curves show up on the chart below.