What Happens When $500 Billion in Risk Parity Funds Hit "Sell" on Stocks?

Phoenix Capital Research's picture

The market riggers are now pulling the pin.

All market rigs end badly. And given the fact that this one has been particularly egregious, the results will be quite ugly.

You cannot pin the S&P 500, perhaps the single most important stock index in the world, for weeks and expect it to end well. This is particularly true when you’re pinning it using Risk Parity Funds and their “buy/sell” algorithms.

Those same algorithms that have mindlessly bought stocks every time the VIX gets smashed, will mindlessly SELL stocks when the VIX explodes higher.

And the VIX will be exploding higher. Historically, the average level for the VIX since 1993 has been around 18-20. We’ve been stock at 9-10 for weeks now.

Not anymore. Today’s move could very well be the start of something big. The below chart predicts a move to 30 if not 40 in the coming weeks. If this was a chart for an individual stock, you’d say it was a screaming buy.

So what happens when the VIX spikes to 30-40 and the $500 billion worth of capital managed by Risk Parity Funds starts dumping stocks?

Buckle up, we’re about to fund out.

On that note, we are already preparing our clients for this with a 21-page investment report titled the Stock Market Crash Survival Guide.

In it, we outline the coming collapse will unfold…which investments will perform best… and how to take out “crash” insurance trades that will pay out huge returns during a market collapse.

We’ve extended our offer to download this report FREE due to today’s market breakdown. But this is the last day this report will be available to the general public.

To pick up one of the last remaining copies…

https://www.phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

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Anarchyteez's picture

Will we find out if the perma bulls or the perma bears finally get to win/lose this argument ?

I think we are about to. Oh happy day!

I've been BTFD on VXX for months. Fuck all'y'all.

TheRideNeverEnds's picture

What happens?

The Fed et al hit "Buy" and if it manages to push stocks even slightly lower then all who buy will get more free money.

seataka's picture

HOW WALL STREET GOT ITS NAME

"The red people from Manhattan Island crossed to the mainland, where a treaty was made with the Dutch, and the place was therefore called the Pipe of Peace, in their language, Hoboken. But soon after that, the Dutch governor, Kieft, sent his men out there one night and massacred the entire population. Few of them escaped, but they spread the story of what had been done, and this did much to antagonize all the remaining tribes against all the white settlers. Shortly after, Nieuw Amsterdam erected a double palisade for defense against its now enraged red neighbors, and this remained for some time the northern limit of the Dutch city. The space between the former walls is now called Wall Street, and its spirit is still that of a bulwark against the people.[12]"

CryptBrain's picture

Dr. Doom has been selling this scenario for how long now?  I get that eventually it'll take place- but I think we're early.

They're gonna wait for the BOOM, BOOM!!!

 

DjangoCat's picture

I have some sensibility and felt the last one accutely.  This feels bigger and nastier.

Anarchyteez's picture

+++

I wholeheartedly agree.

stitch-rock's picture

Beat me too it...a broken clock still tells time.. blah blah
What Ive noticed: the longer the bull run, the smaller the drops Graham charts out.
I like the Spooz chart I saw he did with the forward 'trending' going back below 500pts.
Def a fav....