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Third VIX ETF Short Squeeze In A Row Sends Stocks To Low-Of-Day
For the third day in a row, VXX - the VIX ETF - is suffering a dramatic short squeeze (which makes sense given than short interest is 64.08mm shares against 68.1mm shares outstanding). This surge is weighing on stocks which just hit the low of teh day - with Small Caps now in the red.
The pain is beginning...
Paging Volkswagen...
And stocks are suffering...
Fourth day in a row of pump'n'dump...
All driven by overnight rally on vapor-thin volumes in S&P e-minis on the back of USDJPY to get everyone bulled up for the US equity market open... So far yet another plan is failing miserably.
Charts: Bloomberg
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I am wondering how much this one of a cyvilisation time economic crash will impact the wealthy people, who need to buy
protection for their wealth (in last instance it s the law and order from the gov), and it s much harder to buy protection when
it s the article of basic need for everyone in the time of chaos and turmoil. Will they be able to pay for that protection?
When you are the market, you let fanboys take care of you.
--Tim Cook
Bring it on.
Moar Doom!
"So far yet another plan is failing miserably."
Is it? Do you Think?
Perhaps the Plan is going just fine.
Hey ho.
The entire market is overpriced and unstable, so bend it up some more since nothing could possibly go wrong. I hope this is an evil plan and they're using Keynesian models to plan and predict it......
Witch Hunts in China, short squeezes on Wall Street, collapsing carry trades.
The Big Guys never get hurt. They always EXIT. They had exit plans a long time ago. They established safe havens a long time ago.
The average Joe on the street gets burned - every time.
He gets burned when his 401K and his retirement money are gone. He gets burned when a bunch of stupid politicians - who NEVER understood finance, but were willing to take handouts from Special Interests - run around screaming "Woe is me! The sky is falling. We could never have seen this coming. Elect me and it will be different".
SAME OLD, SAME OLD.
It never changed.
If the average Joe doesn't know how to exit then he shouldn't be investing. Do you drive a car without knowing how to work the brakes?
Playing on the margin is the really stupid part, but then again, Las Vegas got rich using the same principles.....
Pushing a car with a dead engine uphill takes a lot of damn work. Gotta take care when you get that sucker up to the top of the hill. You either gonna chase it down trying to stop it, or run off somewhere in the bushes where nobody's gonna find ya and arrest your ass for fucking something up.
Didn't last long!
VXX1/3.715 x SPY = 445
HVU1/12.26 x SPY = 270
$24.12:vxx, $21.57 trend price
61.20:hvu, +10.8% to trend price $55.23
so for those not handy with math that means VXX is acting like a 3.7x inverse to the unmargined market index for s&p500 or Dow, HVU (tsx) acting like 12.2x inverse (and just had a reverse split 1 for 10 to ensure it's much more expensive to get into now)