With the recent equity breakout to the upside, the VIX has crumbled and taken the VIX futures with it. The curve is in slight contango which might mean that the trade of 2010, shorting VXX, might come back into vogue:
The market sentiment seems to have changed drastically to the positive in a short period of time. With the collapse in credit spreads, the VIX, the dollar, and rising equity markets, it might be difficult to change the mood to the negative regardless of European politics. The only market risk factor that has not improved dramatically is the level of interest rates, but it is difficult to judge how the absolute level of interest rates has been impacted by the actions and potential actions of the fed. Right now it seems to be a win for the bulls as we head into the end of October and typically the bullish season of the year.