Goldilocks (XIV) v. Three Bears (VXX)
XIV loves a goldilocks economy, one growing fast but not too fast to raise interest rates.
I've developed a short term (5 day) proprietary index using the interplay between JNK, LQD, and TBX.
When both are favorable the economy is in Goldilocks mode and XIV should do well.
When both are negative the economy is in Three Bears mode and VXX should do well.
When the signals are mixed, no call is made.
As of the close on Friday the indicators are flashing GOLDILOCKS.
This means I would not try to take advantage in the short trend of increasing volatility by playing VXX, holding on to XIV.
