IMO, & am not do.john, VXX short & XIV/SVXY long as well as VXX puts are safe to 2/22. I will move to the sidelines at that time & see how sequestration works out. Perhaps they kick the can further down the road...
I am currently on sideline. If I get short now, would be a small position, because market may correct. If we get a market correction, and a pop in VXX of 20% or more from where we are, then I would short a much arger position. If market takes a major hit, then I will go heavy into a short position, and also buy puts and continue to build that position until panic subsides, then sit back and take profits until year end.
All easier said than done, but to me, much safer to sit on sideline and wait for a pop, and get short, rather than trying to play VXX on both sides and try to time and ride it higher, then switch to the short side after the big pop occurs.
At least on the sideline, not losing any money!