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
23,431 Blog Posts

Markets Aggressively Vomit Up Gains and Clown-Tumbles Like Losers into the Bell

If you came into today thinking the market would go up another 600 today, you should literally kill yourself. After gapping higher by 350 this morning, stocks did nothing but donkey punch lower — reducing SPY bulls into dust.

I’m expecting more shoes to drop in this volatility scandal, as I am certain there are dead bodies to be uncovered. I cannot tell you how many people I know were selling premium or long XIV — thinking it was free money. It was the very best investment vehicle of all time — until it traded down from $100 to zero in an after-hours termination event.

I realize it was written in the MUH prospectus, but everyone who works at Credit Suisse should be imprisoned, nonetheless. Even the janitors should go to jail for this shit. It’s unconscionable to believe they can get away with this shit — and I’ll be praying for them on a nightly basis for God to smite them and kill off their family name.

I truly want the markets to crash by thousands of points tomorrow. Hopefully it will happen. If it doesn’t, that’s fine too.

Top pick: SOXS

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56 comments

  1. sarcrilege

    At bare minimum this guy should work off his crimes in a cotton field; with short water breaks.
    https://tinyurl.com/ybecrnjd

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    • numbersgame

      Fuck off, asshole. You already posted that link in a thinly racist manner. I guess you remembered that racists are generally morons, so you went full “cotton field” so they’d get the message.

      Funny, I’ve never seen you poist a bio link when the asshole CEO is white. I guess white CEOs are hard to find…

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  2. donkeypunch

    You rang…time to cruise the ol faz and ride some tza. Srs making some noise as real estate is too damn high considering rates are going up. Yeah I’m def on the spectrum. Only greed in real estate past 8 years…time for fear.

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  3. roundwego

    short the fuck out of Tesla and super gay apple.

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  4. fryguy15

    Dude get over it. Everyone long stocks was effectively short vol and lost money. Everyone

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    • reversion

      Not many instruments lost 100 percent in a day fella

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      • fryguy15

        Ok. You are right. I guess we must keep talking about it then. Carry on.

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        • gappingandyapping
          gappingandyapping

          If Bitcoin went to zero overnight do you think we would just mention it for a day and move on? Fuck outta here with that shit, this was a cataclysm that very few if any have seen. Lehman and Beare did not got to fucking ZERO overnight. Prepare for more derivatives of this debacle to unfold.

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    • Dr. Fly

      Fryguy is perpetually menstruating. You remind me of a scorned bitch. Got pay for a hooker or do some opiates to mellow out, otherwise fuck off and quit trolling.

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      • fryguy15

        Dude get over it. You’re the one that keeps bitching like a little girl on the rag. Weak ass faggot. I’m only here for the entertainment. Your market commentary has been sorry and tired for years.

        Fucking off now
        -fry

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  5. acehood

    Why on earth did you, Fly, and so many others think XIV was still the trade to be in this year? Did you not notice how firm Vix was (no homo) during January???

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    • gappingandyapping
      gappingandyapping

      People on this site were not in it to fucking HODL, they were capturing the major collapse of volatility that happened right after a major crash. I have traded the instrument since inception (I was long the fucker at 6.13 even) and I have NEVER lost money in it, probably traded it well over 100 times and then overnight in after hours it goes from $100 to virtually $0 with no trade halts and no warning or proper pricing during the session. You tell me how that makes sense. I get it if there was some sort of warning but there wasn’t. I am sure you don’t remember the levered oil ETFs that went to zero and then got pulled from trading, they didn’t go to 0 in after hours, they gave people time to get out, even at a 50% loss but there was at minimum some time for stops to trigger. With this there was NOTHING, so do act like you know what was going on, you don’t.

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    • Dr. Fly

      Acehood

      You have the brain of an armed chair. There’s no point in debating anything with you.

      Move along.

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    • shy

      The problem was not with the concept of shorting the VIX futures complex, the problem was that -1x leverage was simply too much inverse leverage for XIV and SVXY to handle the last 50% surge in underlying futures without collapsing.

      A XIV or SVXY style inverse instrument with half the inverse leverage would have opened less than 50% down, without triggering any termination event. By continuing to function, a -0.5x leverage inverse volatility fund would also have allowed a trader to profit from the VIX futures collapse that occurred the next day, without the undefined risk of shorting UVXY or VXX, and without the erosion of volatility premium and extrinsic value with UVXY or VXX put options.

      A hypothetical half-levered inverse VIX futures fund would have allowed a late trade to take 15% profit the following day. Contrast that with the 90+% loss in XIV.

      There’s no question that an event like the 1987 crash would cause the collapse of levered volatility funds, but a 10% correction off the highs?

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      • tonka

        Your half levered fund is basically $ZIV

        The general consensus was a 170% VIX spike would mean $XIV extinction. What no one saw coming (the true Black swan) was that VIX futures beta would go to 1 with VIX cash. So it would only need a 100% VIX spike. That had never happened. Usually the beta is ~0.4.

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  6. gappingandyapping
    gappingandyapping

    You would have been the laughing stock of the century if you came out on CNBC and said $XIV would go to zero before DogeCoin or FuckCoin. How is this shit not criminal.

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  7. roundwego

    man why is everybody sleeping to the fact that Obama, Clinton and DNC is now implicated in the Russia Gate. the market crashing as the deep state is revealed in way worse than watergate, is not just coincidence is it?

    https://www.zerohedge.com/news/2018-02-07/fbi-lovers-new-texts-expose-obama-complicity-he-wants-know-everything-were-doing

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    • it is showtime

      Heya rwg
      For the onlookers, that’s exactly what I said in january, of 16

      Hi onlookers
      Hi trolls
      My summary described that literally-precisely, in the weeks following the election

      Within days of the election I said the indexes were being used as leverage or contingency

      suck it

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    • numbersgame

      Context matters: I’ll hold judgement on both Obama and Trump for now.

      Situation 1: Trump is acting fishy as hell. Not *1* negative word about Putin. Refuses to sanctyion Russia (is that even legal?), despite law passed by 90% f Congress and ignores all of his Intelligence Departments. We know Trump has doen business with Rusians, and we know Trump is a liar. Lots of smoke, maybe a fire? Maybe the Russian WERE colluding. In this case, it makes sense that Presdient (Obama) would want to know if the Russian were trying to put a Manchurian Candidate in the White House

      Situation 2: Obama hates Trump because of his racist and personal attacks. He’d rather see ANYBODY else become President. He puts the FBI on Trump to dig up dirt that they can use against him.

      Only partisans think this is Black and White

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  8. bennyhill

    Easy one – one more fast dip to embolden the shorts and allow the longs to get hedged before making new highs.

    Fly the mobile experience here sucks and the ads make it nearly unusable.

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  9. roundwego

    remember the crazy ramps in the last 20min of trade between 2010-2013 when it was vapor thin volume and algo machines made rocket moves. Well now that the Fed is reducing its holdings and raising rates. the exact opposite is happening. Flashcrash always happens when the Fed lets off the gas. machines know how to crash super fast.

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  10. it is showtime

    It would behoove me to point out YANG did very well for me today

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  11. MSGT HARTMAN

    So day traders get raped by an industrial sized broom stick.

    Somebody has to lose.

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  12. ferd

    Yeah, Tips are looking lifeless. But ever since the December affirmation that, rather than the swamp being drained, we would spend and print at an even faster pace, we have seen bonds and the dollar trade down and commodities, like energy, show resilience. Is it time to position for inflation and for the conundrum that this will present the Fed?

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    • sarcrilege

      no worries. we wont have to wait much longer for some action in markets and t-bills. Israel wont quit until we get the big war in ME. Russia’s there, Turkey’s crossing into Syria, NATO is there, KSA, etc. Forget NK. It’s ready to go in ME. All we need is another doozy (like 9/11) false flag courtesy of that shitty terrorist State of Israel and off we go:
      https://tinyurl.com/y9qbc7ly

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      • ferd

        Yes, there are Israeli and American neocons who want us to war with Iran. Yes, Trump seems to be their compliant dupe. But I do not assume that the US will necessarily be seen as the money safe haven if traitors in this country are successful in suckering us into that particular war.

        Separately, while I appreciate that you are one of the few who continue to warn people about the well-document desire of some for us to go to war with that whole listing of countries. I only wish that you’d see fit to leave the bigotry out of it so that you would not taint the truth in your posts with needless poison.

        Most sincerely submitted.

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        • sarcrilege

          I appreciate your request (no sarc). Not sure where you’re going with it. Are you suggesting I “turn the other cheek” and respond to (((their))) mortal hatred of us, white christians, and (((their))) genocidal plans for me and my family with LOVE? Have they not killed and murdered enough people already for them not to be finally wiped out? Where is your loyalty? Are you self-hating? Do you not wish to preserve where you came from? Your religion, culture, heritage, family and tradition? Do you not want to preserve that or you’re ok to be wiped out? Are you going to send your kids and members of your family to die in ME for their satanically motivated plans? Where DO YOU STAND?? You clearly know what is going on and yet you are willing to surrender to (((marxists))). That’s what (((they))) want!! You know it! I understand there is huge % of the rank and file Jews that are being played in the most horrific ways by the international zionist cabal; however, the ignorance and silence of the rank and file Jewry is deafening. Where do you stand?

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          • numbersgame

            The problem is “their”, “them”, etc. does not exist in the context you are using. You are assigning beliefs of the few to whole populations – even when that belief is part of the minority of that population.

            So the head of Credit Suisse is not a dick *because* he is African – he is a dick *in spite of it*.

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          • sarcrilege

            ok, numbers, have it your way. I hope your kids, friends and family are going to give up everything and go, willing, die in ME for Israel’s benefit. My boys won’t. That much I can tell you.

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          • ferd

            If you have some facts. If you are trying to convey those facts to those who are not yet aware of those facts. Isn’t it logical to speak in a manner that does not alienate the audience …assuming of course that is that the audience isn’t a bunch of racist knuckle-draggers like yourself.

            Or maybe you are working for AIPAC. Trying to associate any acknowledgement of neocon war plans with antisemitism.

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          • sarcrilege

            ferd, you have exactly the same facts I do, except you dont have the balls to be open about it publicly. Also, you can do better than calling me racist, or whatever other marxist snowflake label you want to throw at me, it’s like water of duck’s back. Your not addressing my questions speaks volumes. It really doesn’t matter. You’ve demonstrated many times here you have the intelligence to examine both sides of the argument. I dont need to be convincing you. You know it’s real. Perhaps you’re choosing to live in denial…and that is exactly what the marxists want from you. What goes for @numbers goes for you. I just hope you will feel good when your closest ones die in ME cuz draft is coming. On the other hand, perhaps you’re one of (((them))) and will sit and watch christians and others die for your Greater Israel. Not once have you gone on the record where your loyalty is. Not once. That tells me a lot.

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          • numbersgame

            Look, I don’t want the US in another ME war any more than you do. However, I don’t think it is some “jewey” conspiracy. I don’t it has anything to do with hatred of white chrisitans , either.

            War is profitable, and what’s more, war gives peopel something to throw rocks at, instead of the corporatocratic government machine.

            You lost your job? Well, corporations have to make profits, and a LOT of profit is better than a little. Besides, I’m sure you can find a job, no need for welfare. Uh-oh, Boeing lost a contract ot Airbus? Better buy some more KC tankers. And of course, you support our military, right? Good, let’s buy more tanks, even if the generals say we don’t need them. Veterans benefits, let’s cut the VA budget – that will amke them more efficient. Oh no finacaila meltdown! Should we cut executive bonuses – no, we can’t do that, contracts are sacred. Hmm, Pension underfunded? Let’s just change the contractual benefits.

            Small businees loan? Denied! $4 Billion for Amazon? Why not – they’ll bring jobs.

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  13. s.k.

    I genuinely feel for those who lost in XIV. As someone who has been on the receiving of the market’s rape stick at one time I know how it feels to be caught on the wrong side of a trade. But that’s how it goes. If you go to the casino and lose money you take it like a man and move on. The finger pointing is pedantic. They disclosed the risk. You chose not to investigate it thoroughly because it was a gamble. It sucks, but that’s life.

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    • sarcrilege

      except that the market as run by the FED and front-run by the TBTF banks is a crooked casino and the slot machines in it are rigged. big difference. and that’s the grief here…the pretense that these are fair and free price discovery markets under SEC control…which is a lie. it’s all manipulated for the benefit of insiders. at the very least interest rates should be set by the market and its participants. not by a criminal cabal of jewish fraudste4rs and counterfeiters. but I guess now it’s gonna be a goy rigging interest rates nilly willy

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      • s.k.

        There is no such thing as a level playing field in the house. No one forced anyone to purchase XIV, and they disclosed that they had the right to accelerate it upon certain conditions if they chose. They crybaby rigged shit doesn’t work here. They told you it was rigged in the disclosure.

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        • sarcrilege

          ok, good point. my bad. if it was disclosed it was rigged then i guess it’s buyer beware. i got the impression there were some shenanigans going on during and after hours that were “irregular” and not disclosed.

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        • Dr. Fly

          Yes, they disclosed that it was rigged. Therefore, it was okay to SEND IT TO FUCKING ZERO FROM $99 IN AN ACTIVE AFTER HOURS SESSION.

          FUCK YOUR FACE.

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  14. stries

    I didn’t own XIV, but I totally agree this is criminal. I sure wouldn’t have read the fine print, obviously most didn’t. This product should not have been available to trade, it is total fuckery. It wasn’t transparent enough to the average investor, it violated people’s common trust. You should not lose 90% of your money in a investment in one day because of an anomaly that had no great effect on the market as a whole. It’s like giving someone a new drug to treat a disease, telling me it has been working, and buried in the fine print something about it could randomly kill you. Where the fuck was the SEC in protecting the average investor here? Sickening in my opinion.

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    • fryguy15

      That’s like saying I took some heroin for headaches for years and it worked like a charm. One day it killed me. WTF?!

      These people obviously didn’t know what they were fucking with. And average investors were likely not hit by this because they don’t mess with INVERSE VOLATOLITY PRODUCTS. It was active traders.

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      • stries

        People are aware heroin can kill them, that’s pretty transparent, so not like that at all. Hopefully it doesn’t kill you though. Obviously average investors did trade it, as well as active traders. It should never have been allowed to be on the market in my opinion, and how the bank fucked so many people out of money is criminal. The SEC throws Martha Stewart in jail, they let the banks get away with murder.

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    • numbersgame

      It seems like a lot of people (Trump) included, seemed to have forgetten the *cause* of the volatiltity spike. A refresher: http://money.cnn.com/2018/02/02/news/companies/wells-fargo-federal-reserve/index.html

      Order that 2nd biggest US bank, not allowed to issue new mortgages unless it sold assets. Do you think that might cause some volatility?

      With the VIX near an all time low, a 100% spike was really not overkill. At 3:10pm on Monday, the VIX had doubled. If you find yourself holding a contract that moves inverse to the VIX, what are you thinking? How far behind are the futures?

      The fact that XIV was at 99 at close was a GIFT that most people didn’t unwrap.

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      • tonka

        Futures are typically half as volatile as VIX cash. Except for extinction day when they basically traded in lockstep. Should’ve required a 170% VIX spike, until markets changed and did something they had never done before.

        That’s why they’re called black swans. Extinction on a 100% spike was not viewed as within the realm of possibilities.

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        • numbersgame

          The sophisticated ones would have understood that the move would be muted, so should have been looking for an XIV of 60 max for a buy.

          The unsophistcated ones shoudl have expected a **bigger** plunge during the day (-1x ViX move), not understanding the complex relationship between the actaul VIX index, VIX futures, and XIV itself.

          So which group exactly would have thought that 99 was a fair price?

          This is yet another in a case of refusing to even attempt to figure a “fair value”, and instead just thought “the VIX will go down, so XIV will go up,” not considering that XIV was tremendously overpriced at the close.

          Again, a 95% loss was a black swan. A 50-80% loss would have been expected.

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          • tonka

            Hard to say honestly. The XIV premium started over a week prior and was well documented as it slowly built. Had to come out at some point. Makes sense I guess thatd it’d come out during such an event.

            I believe it was over 10% premium before the day even began.

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  15. masteroneass

    Lost 100 percent in one day in rigged after hours. Funniest shit I ever saw. Thank god crypto is 24/7.

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  16. moneybagz

    Don’t worry Fly! You were not alone…..Do what i did and go look at your PA balance from one year ago compare it to today, laugh, replay monty python Tis but a flesh wound on you tube, laugh…………However, contagion from the derivs could very well be cancer, the market may want to go visit the mayo clinic..

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