Cramer’s hairdresser, Sebastion, is an expert in analyzing the completely unpredictable and useless patterns in the VIX index, says the markets have bottomed because his VIX charts said so. In spite of the fact that volatility has been an infantile way to gauge the direction of stocks, bearing no mathematical correlation between it and the overall market, Cramer felt, in light of what he described as ‘Britain’s bonehead move to leave the EU’, promoting the advice of his hairdresser’s VIX opinions is, inexorably, the best course of action for him and the people who watch him every night–in search for clues as to what the market might do next.
After Cramer got done explaining what Sebastion thought of VIX, he pulled a triple lindy dive into the pool of stupidity and unveiled analysis on the VVIX–which is a derivative of the VIX. This is tantamount to playing with your own feces in the middle of the highway and then deciding to light yourself on fire in order to clean up after yourself.
Out of all the boneheaded decisions Cramer has made over the years, to borrow a phrase, this has to be the worst one of them all–maybe second only to his recommendation that Bear Stearns was fishing takeover bids–just prior to its demise.
Markets are set to fucking V shape the hell out of here.
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Dr fly,
The good Dr the one with the Bears disagree with you.
http://www.brookings.edu/blogs/ben-bernanke/posts/2016/06/28-brexit
Certainly glad the high volatility is behind us and we can go all in long now. Booyah!
hey yellen said the banks can with stand 70vix. that is my new sept target.
A lot of times Cramer is right. If you say a whole lot of stuff, some of it contradictory to what you said before, then you are bound to be right a lot– and wrong a lot too. That VIX voodoo is highly entertaining. Next time he’s on TeeVee he’s going to read goat entrails. You can’t say the man doesn’t do his job. That’s what he’s paid for– entertainment.
Sebastion needs to talk Cramer in to bringing the mullet back
wow this video is just stupid. Cramer needs to get JMP quant on show and explain the current vix cot and the skew. How the fuck did cramer survive the 2008 crash?
Nikkei looking crashy.
This is a joke, look at the open interest in back month Vix call options (Aug/Sep/Oct)
http://www.marketwatch.com/investing/index/vix/options
“There’s no fear in the market, we have completely bottomed out.”
pound looks like it wants a pounding.
pm’s on the move
I am cravin some bull steak tomorrow. I’ll take the prime rib end cut please.
massive redemptions, I like the sound of that.
http://www.zerohedge.com/news/2016-06-28/why-barclays-thinks-v-shaped-recovery-dead-massive-redemptions-are-coming
Congrats on your timing, spot on. Might not be today, might not be tomorrow, might take another 90 days, but the whole god-damned leveraged mess is going to get flushed right down the toilet. Trotsky once described men as “tail-less” apes. He was right about that. Cynicism is the new black.
Please learn to spell my last name right Sebastian with an A
I’m amazed how people think Brexit is basically over, or won’t happen. What will happen when 34 new referendums hit the EU in the coming elections from France, Italy, Spain, Hungary, etc, etc, etc.? It ain’t over until the fat Viking lady in Norway sings “We Are the World”.
I think Cramer is an intelligent guy but lacks some common sense. Even this morning he was on CNBC saying that government has to get involved and create more jobs. Really? Sure Jim, you and the government know how to run the businesses of Fortune 500 companies better than the CEOs do. You and the government make much better business decisions than the business owners themselves. Boo-YAH!
“analysis on the VVIX–which is a derivative of the VIX. This is tantamount to playing with your own feces in the middle of the highway and then deciding to light yourself on fire in order to clean up after yourself. ”
+1 Million
Some people see a chart and robotically think TA will alway work on everything because they don’t understand how the various indicators were devloped and why they work.
What??? His hairdressers VIX analysis is flawed. VIX futures have gone into backwardation! Front month is higher than the back month which signals traders and hedgies are buying protection. This is always associated with weakness in stocks. More to come.