Smart money hedgers in VIX futures seem to be betting that volatility is going to increase in the coming weeks as markets digest major news events. But their record in volatility is opposite of what it is in most other markets, and the VIX tends to decline after they establish big positions, as they have recently.; On Monday, crude oil enjoyed a historic reversal from a 90-day low. The few other times it reversed like this, oil and energy companies took off to the upside. The biggest caveat is that lesser reversals didn't show a consistent tendency to lead to good returns.

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