Leveraged funds are long VIX futures at the 98th percentile of the past two years, the same week the 7-Year auction on September 24 drew just 57.2% foreign demand and graded an F: volatility bulls stacking up as foreign buyers walk from duration. Managed money is also short E-mini Russell 2000 at the 6th percentile, a crowded bet against small caps heading into the October 28 FOMC, 17 days out. If the foreign bid keeps fading, the funding side breaks before equities do.