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The Volatility Of Volatility Has Never (Ever) Been Higher
As the cost of insuring equity market risk (VIX) spiked higher this morning (having been broken for minutes after the open), catching up to the cost of insuring credit market risk (CDX HY) which has been screaming dead canaries for weeks, a funny thing happened to the volatility of volatility.
VVIX (the estimate of the uncertainty of the cost of insuring equity risk) exploded to a level never seen before - as various ETF/hedging strategies imploded - a level twice as high as during the Lehman crisis...
Finally, if credit, equity, or vol insurance is too expensive, there are always other ways to 'protect' yourself...
Can't be too careful, make sure you're packing protection. pic.twitter.com/QyGw5Zoeqa
— Quoth the Raven (@QuoththeRavenSA) August 24, 2015
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....mutual fund 'investors'...sell orders in or buying the dip? those trades should be coming online soon, yes? or was that the afternoon decline already? anyone have insight on that?
Any one else catch the clip of the CNBS crowed in freefall on air? LOL. Dipshits don't have a fucking clue.
https://www.youtube.com/watch?v=QgIG0qkTec4
Aw man, it's almost like they were convinced the economy was in great shape.
That was fucking funny right there bro...
Looks like the Fed could only focus on one thing at a time, typical government workers. Looks like the 1880 level in the SPX was all they cared about. I wonder how much that cost? $350 billion?
That's not volatility, that's the spread of the vapor cloud of a large fuel/air explosives. Anybody got a match?
The market tweets the fed chairman #imfukenthischikenow
F the VIX and the VVIX. We're into our daily 3:30 rampfest. Mission: Keep the S&P over 1900.
C'mon, Kev - you can do it!
No worries, the closing ramp is running right now so everything is just awesome......
Somebody burned a shitload of powder from 3:30-4:00 for pretty much nothing.
VaVOLLLL!!!
(if any remembers cartoon character VaVOOM!)
It's just Wall Street throwing a tantrum. Trying to force the FED into showering them with more free cash.
< Tanks in the street
< Hand over $8B to the Wall Street Hebrews
Are they the Money Changers today? If so some body has a nice quote that could be applied.
"It's just Wall Street throwing a tantrum. Trying to force the FED into showering them with more free cash."
Nah, there are huge weaknesses everywhere and PBOCs capitulation after spending for ZERO sustained effect $400 BILLION propping up their equity market and the yuan, now allowing their market to go where it should, WAY down, triggered the reality of the situation. It has been openly revealed that the emperor has no clothes, something everyone actually knew all along, and now its a game of musical chairs in EVERYTHING.
Why the Bear of 2015 Is Different from the Bear of 2008
August 24, 2015
Far worse starting conditions:
http://www.oftwominds.com/blogaug15/bear8-15.html
So does this basically mean no one knows what's going on?
No, that many DO know what's going on and that more are realizing it by the minute. The facade of normalcy has been lifted, perhaps only slightly, perhaps all the way.
Hope those rubbers were stress tested.
sold by Vandelay Industries no doubt
...and you want to be my latex salesman?
"All hands on deck! Hoist the jigger-mast! Load the cannons! Man the bilge pumps!"
PPT has got to get the nightly news report closer to green than -600!
I think I'm going to puke!
You can tell every time the Fed lets their foot off the gas the markets drop like a rock
Even former Gordon Brown advisor "gets it".
Stock up on canned food for stock market crash, warns former Gordon Brown adviserhttp://www.independent.co.uk/news/uk/politics/stock-up-on-canned-food-for-stock-market-crash-warns-former-gordon-brown-advisor-10469509.html
Is that the same Gordon Brown who... http://blogs.telegraph.co.uk/finance/thomaspascoe/100018367/revealed-why...
FINALLY, finally made money with UVXY today that I held onto during the worst of times! I didn't sell at the UVXY lows because I KNEW this bitch had to tank at some point!
What about volatility of volatility of volatility?
can someone explain me pls- why the VXX is up only to 24 level(17%) while the vix is up 40% to 40 level?
Seasonally adjusted
Good. Here's to hoping that the debt-backed money men finally lose it all so that we can build a sound and sovereign monetary system in place of the ashes, so that we no longer have to give 48% of the products of our labor as unearned income to interest, rent, and profit.
And you haven't seen anything yet.
Waiting for sovereign debt collapse in US.
That or war will be the only 2 outcomes.
Physics 101:
VIX = speed of moves
VVIX = acceleration of moves
Dust off those differential equations.