Looking at the charts, if vol does not reverse next week, and it may not (The inverted hammer is interpreted as a reversal candle but more often than not it is a continuation candle, and a cruel one), I think it will by Friday, and to me that means we will see 20 to 30% moves higher in XIV and SVXY, and 40 to 50% down moves in UVXY at minimums. These reversal have always touched the channel mid point before a move higher, and I am playing this as a normal correction and not yet a full blown decline. I think that comes later in the month or even March as the SPY tries to make a right shoulder in its attempt to ride higher. I am wrong if after next Friday the market closes below last weeks low. I hold 178 Feb puts from a month ago, and been selling weekly 177's against them.
My portfolio is also short with DUST, GASX, QID, and SPXU as a balance against my long term long positions. I
see no reason to make any wholesale changes other than to add to XIV, and watch the gold/miner positions we are in.
Please enjoy the charts.