Market roared higher by 550. It’s hard to argue XIV would’ve been +30% today, when the cathartic moment it failed contributed to the sequence of events that caused the price drop in the first place. It’s a chicken vs egg paradox. In other words, the destruction of XIV was the genesis of today’s rally. The tree of profit, at the altar of the Federal Reserve, needed to be enriched with the blood of traders betting on complacency.
After all, is there a greater evil than complacency?
I think not.
The most important development today was the bounce in Bitcoin and other crypto currencies. They are risk personified and the market didn’t like seeing so many HODLers roasted at once, without respite. We prefer a slow boil to a roast and it’s never a good thing to have too many executions all at once.
Earlier today I sold out of my gold position and a lot of shit and now have only some shit and XIV and some SOXS, which was purchased for the purposes of a hedge and I was not around today to sell it, so now I am stuck with it — like a fool — eagerly awaiting an exit.
XIV closed down a meager 92% for the day, an impressive showing, especially since volatility was in fact crushed as well. My quant portfolio was higher by 2.4%, and that represents 70% of my investable income — so I suppose that’s something I should be pleased with. All in all, today was a very dark and grim day in the annuls of my trading history and I shall always reference and remember the time when the great volatility whore raped me for sport, not for pleasure.
Upside volatility ETF, UVXY, is the opposite of what XIV is supposed to be, and it was down by more than 30% today.
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