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VIX ETF Nears Record Low (85% Of Float Short)
While we are well aware of the decay-ridden denigration of VXX (the VIX ETF), today's plunge (on heavy volume) nears a new record low for the NYFed's best friend. With 51.695 million shares short (and just 60.5 million shares oustanding) according to Bloomberg data, one can only imagine what happens if we get a true 'event' that is allowed to happen.
VXX nears record lows... 18.50 vs 18.45 lows on May 22nd
As VIX futures push back towards the most short in 2 years...
And actual short spec contracts (at over 201,000) are close to record highs.
Charts: Bloomberg
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In an ETF that is designed to reverse split regularly, why wouldn't you short it?
I'm thinking the phrase "high finance" refers to drug use, as you'd have to be out of your damn mind to take any of this shit seriously.
The casino is busy, so get your free drink and hit the slot machines.....
VIX pricing is 100% manipulated just like everything else that the banks see is critical to control. They've apparently set the high speed algorithms to continue and drive the VIX lower.
When you look at the model it makes sense in order to protect currencies, bonds and stawk markets. VIX is volatility and worry! So they beat the living h*ll out of the VIX price using algo's and its so obvious by some of the rapid beat downs that it resembles the gold and silver charts. This looks as rigged as it gets.
VIX is a black scholes input.
Therefore, manipulating vix lower has a direct effect, reducing all option premiums and severely mispricing risk.
This mispriced risk then goes on to percolate into the underlying securities, dampening the volatility.
The above the law central banks have destroyed the markets since 2008 with their ongoing daily open market operations.
Yeah, but just wait til it bounces back to 7000!
Like a stock, VXX’s shares can be split or reverse split— 4:1 reverse-splits are the norm and can occur once VXX closes below $25. For more on VXX reverse splits see this post.
http://sixfigureinvesting.com/2013/04/how-does-vxx-work/
"...one can only imagine what happens if we get a true 'event' that is allowed to happen..."
Nope - sorry. I can't even imagine TPTB 'allowing' anything to happen anymore. It's ALL well-staged Kabuki theater, complete with black swans and two-headed freaks waiting to march across the state on cue.
The FED and US Government don't work in a vacuum. Russia, China and other countries have had enough of the US parading round as the 'big I am'. America's history is one of hucksters and snake oil salesmen (not an original quote from me but I can't remember who said it unfortunately).
ALL fiat currencies come to an end.
ALL Empires come to an end.
DavidC
** ALERT **
Watch out ZeroHedge commenters. The DOJ could be coming for you.
http://motherboard.vice.com/read/the-government-wants-names-of-online-co...
Janet's favorite short - the VIX.
Todays so called "markets" as managed by the Sea Bees....
Print money
Buy S&P futures
Sell VIX
Sell Gold
Lie to the donkeys about what's holding things together
SELL THAT PAPER GOLD! I GIVE NO FUCKS!
Keep stacking :)
I did a little 'back of the napkin' calc this morning on the gold supply/demand situation as it stands today. In 2014, there was close to 3000 tonnes of gold produced. India and China accounted for 2200 tonnes of demand. Central banks accounted for another 500 tonnes of demand. That leaves a mere 300 tonnes for the rest of the world to use for industry, jewelry, and investment (coins/bars/funds).
In much of the world 'jewelry' is sold by the gram. Go to an Indian wedding jewelry site.Every item displays the grams of gold in the piece. That gives the buyer a base price. The rest is in the artistry of the designer and other jewels in the item.
I really don't consider this to be a simple 'jewelry' transaction. It is really an investment in gold bullion...just in a wearable form.
With the exception of Western wedding rings most of the world's gold is sold like this.
I have purchased gold jewelry in the Philippines and the transaction begins either with the buyer supplying the goldsmith with a cetain quantity and purity of gold, or the purchase of gold directly from the jeweler, and then a quote for labour to fabricate the design selected by the purchaser. It is very efficient and there is no markup in price for any metals purchased - the profit is made on the fabrication.
After experiencing this type of jewelry purchase, it has become a rather disgusting experience making jewelry purchases locally. The markups are extreme and the purity is garbage. The difference in price between a large gold chain here, and making the same purchase in Asia, would be more than enough to fund a nice vacation to that side of the world.
I see green shoots..........and a lot of red roots.
PS "rooted" is Australian slang for "fucked".
What could happen ?
NOTHING SEEMS TO HURT THOSE MARKETS
This pig set to go even lower.
Duh, shorting volatility is a close to being the Fed as one can get. You're basically creating money out of nothing thanks to Fed market rigging via S&P futures. SMH
Yet another example of 'nekkid shorting' allowed by the SEC so that the big banks can make money.
Why would there ever be a time when the FED software would not control VIX futures? Without a revolution it's not going to happen.
Since all our 'money' is debt, the Fed will replace bad debt with cash. The answer to Gross' question is: it will end when the FEd can no longer print...........or when those who are the recipients of the cash no longer want it.
Since the Fed is unrestrained in it's printing.....the answer is: when hyperinflation destroys the dollar.
See Bill ...easy question.
a battered old boat sailed into the Zero hedge Yacht club
late last night on the ebbing tide..
low in the water looking salty, hard sailed
her name is 'Miss Vix;
Well VXX set a new record low today. Heh