iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,617 Blog Posts

Market Recovers and Crushes the Skulls of All VolatiltyFAGS, Reducing Them to Dust

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.

Well done, Credit Suisse. Your sacrifices went better than expected.

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25 comments

  1. joyous__ending

    I have designated this market event as: “The 2018 Groundhog Volatility Crash”

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  2. awanka

    Shall I bring out the Catherine wheel, Mr. Fly?

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  3. jonnybegood2

    are you going to sell your XIV before liquidation on 2/20? might as well get pennies on the dollar, no? any reason to hold? saw it traded between 5 and 10 today although not sure what the price action entailed. not sure why anyone would be buying at this point but i have not looked into it other than the horror story news.

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  4. oilerua

    Market Recovers and Crushes the Skulls of All VolatiltyFAGS,

    which are the very same market runners that did it both ways ….

    your coverage is really sterile

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    • natehois

      Flys done more coverage than any other financial blog save zerohedge, you dolt

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  5. john_galt

    You should be buying more XIV with the little cash you have left. YOLO.

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  6. sarcrilege

    Markets closed green. Up by 2%. Some contagion. @showtime will explain shortly.

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    • it is showtime

      Initial punch from deepstate-wallst, Uh do you really believe it was mild inflation that caused the crack, the crack that started mon-tue before the ‘magic data’ on friday, And that powell would aggressively raise rates on his own guy in the opening weeks of his term, No, So that’s a ruse or bs, I believe the crack has occurred until proven otherwise, They will hit it again if phase 2 of the memo or prosecution or indictment continues to advance

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      • sarcrilege

        we’ve got ways to go. europe/asia must fall first to corral everybody into us equities and debt. war in ME. and after that you will get your contagion. it’s not time yet. we’re heading to ATH in equities here big time. and USD up to 140. that’s when shit starts happening. just watch.

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  7. moonshot

    Find any new shitcoins this week, Fly? Or just sticking to the old, tired storage thesis? It’s so last week!

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  8. dragun

    This sums up the day.

    https://www.youtube.com/watch?v=4QPU1VpPn2s

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  9. NON Solo

    Fly,

    Are you still bullish on oil for the long term(meaning through year end)?

    Pull up the 5 year crude chart with a volume profile, there is very little price history between current prices and $90. Just need a catalyst to break through $66-67 and on to $90, like Trump going to war with a ME country or such, specifically an OPEC country in the ME.

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  10. soupbone

    another euro-bank fuck-up. BCS..DB..CS.. But being the end game in a huge bubble (the last I figure) one wonders if the canary has just croaked for us. There is always going to be a signal no matter how hard they try to prevent…

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  11. zephler

    $VXX was very strong today while $UVXY not – forced short covering and margin calls related to $XIV? $VXX after hours up 10%?

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  12. it is showtime

    This might be
    the boiling-frog
    stage

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  13. Dr. Fly

    Give me a day to recover and lick my wounds you faggots. I’ll knife your faces tomorrow.

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  14. tonka

    If this has taught us anything it’s that these products have to be re-balanced throughout the day. The current method is gross negligence.

    Right now it’s all done as “trade on settlement” orders, which means the vast majority of VIX futures are changing hands after hours during the most illiquid time of day.

    Case in point, $UVXY re-balance today caused it to jump 30% after hours. I’m sure no one tried to front run that…*sarcasm*

    Shenanigans all over the place.

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  15. juice

    I’m sure CS knew before the bell that XIV termination would be triggered and they shorted the entire float to zero.

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  16. frog2

    I was thinking about buying SPX calls at the close yesterday but because of the huge IV I decided fuck options and tried to dump my whole acc in XIV, you know to catch a few %

    limit order. luckily the last few min the price ran up. even chased it once but kept climbing and didn’t fill.

    in BURG today at the close $3.99

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  17. busted

    I lost my entire account last night on XIV, lost 119K (only had 116k). After hours I decided to scalp a dollar or two on 2k shares of XIV , as it dropped to 80 got filled and proceed to watch it drop 60 dollars in 38 minutes. Fidelity sold me out at just over $ 20 and proceeded to give me a margin call for $3100. 38 minutes and I lost it all. I always heard about people blowing out never thought it would be me. I never had a chance it dropped $20 minutes after my purchase and every limit order I put in was not low enough as it was dropping $5-10 at a time. Wrong place at the wrong time.

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    • thegametheorist

      Shit that sucks. I sold XIV 5 min before the close. Thank god. Sorry about your losses.

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    • Dr. Fly

      Damn that sucks. You’ll get another chance. Save and try again. We’ve all been there.

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