For me at this stage of the volatility index we are near ultra lows. I think the affect of QE on the S&P and consequently the VIXY has worn out
That time of wild correlations was a time when Bernanke hinted then later announced QE 3(?) so was it a volatile time.because of QE or because there were other problems not associated with the S&P. Do other factors create a movement in VIX?
Something else to consider: is there a relationship to US bond yields and VIX?
Due to the leverage of VIXY I wouldn't touch it unless I could buy at the bottom of the pricing. That said if I could buy it at ~21 as a hedge against possible S&P sideways movement I would.
