Monday VIXology

Above is this week's update to our rotation model. Performance metrics are skewed in favor of linear regression values and in this ranking was produced by comparing the 6 week moving linear regression line channel.

Just for comparison sake I've shown the daily bars (above) and weekly bars (below) for a few select ETFs. The big news, hands down, was the 55% pop in the VIX last week, accompanied by a sudden appearance of volume, which helped cascade the majors through the lower LR30 lower bands. For the week: IWM down 4.5%, Qs down 4.8% and SPY down 5%.
This is the first major violation of the weekly LR30 band since the late 08 recovery began and we are now faced with the possibility of a "kiss the channel good-bye" scenario and a variety of yet to be defined support levels.
Previous uber enthusiastic surges in the VIX have exhibited a 3 day span and then displayed a 10-15% pullback and that's that's probably worth a small side bet. Other than that, I'm on the sidelines, busy refining Project Z parameters and deconstructing the PDQ Dashboard to fathom why it exited the long VXX position on Wednesday's close and left a lot of money on the table.