I noted the other day I was hearing voices in my head, regarding ‘retesting the lows’ — before the market could go up or collapse and trade lower with vigor.
These people are like a cult — religiously demanding that any market correction be tested at least once before resolving a true direction. If we test and break lower — we’re completely fucked. If we test and bounce, do bags of cocaine.
Right now we’re roughly 500 points away from the retest lows.
It’s all but a foregone conclusion: we will retest the lows. As such, I bought some FAZ here.
If you enjoy the content at iBankCoin, please follow us on Twitter
my spx calls just turned positive
thank you for your sacrifice
How that turn out?
I wonder what percentage of the time these “retests of the lows” have turned bearish in the last 30 years or so?
We haven’t retested the lows yet, we will but hasn’t happened yet: https://www.tradingview.com/x/YItlNbJG/
something is wrong snap grubhub and twitter are making new highs. its ok the fed will step in.
The millenial flight to safety
Fly get your ass in here and explain the Bitcoin/Index correlation here
Just a measure of risk appetite.
Heavy positive correlation all of 2017.
Correlation flipped to basically -1 from Dec 15 to Jan 30
Back to positive correlation for the last week.
The problem is value players have been more-or-less relegated to obscurity the last few years in this era of easy money, in favor of algorithmic machine-trading that purely follows trends/momentum. There really is no set level where natural buyers (in the form of institutions with an eye to value) will step in–they don’t exist anymore.
What was the point of arguing? You know these things never end on the first spike down. But a nice buying opportunity is setting up.
We’re at lord of the flies liquidity again.
FAZ and TZA looking good.
UVXY is 5 times faster.
Those weren’t voices in your head.
It was the urinal talking to you.
nvda $240 AH!!!
Retest the lows? Is that a meme? The XIV blow-up is noteworthy because it is a retail product. I don’t know when exactly institutional investors got on board the “sell vol” trade; but probably about the same time they started getting sales pitches from Wall St. OTC derivative salesmen with this great new idea.
In order to make money from such trades, it would require phenomenal leverage as the VIX has been blah for quite a while. Now, maybe, they have an institutional version of the XIV problem. IF the cyclical bull is indeed finis, then VIX could be sticky on the upside for longer than they can postpone margin calls.
The fine gents of Wall St. are undoubtedly giving them some time (but not more than a few days) to weigh their options. Ultimately, however, the only option is going to be an asset liquidation margin call of considerable magnitude.
Furthermore, VIX and similar concepts may be tied into many other OTC derivative products.
Lastly, wasn’t there something in the news about a madman strapping an electric car to a rocket and blasting it into space? If that doesn’t top the insanity meter, I don’t know what does.
Oh wait…I’m a little slow sometimes…but isn’t that damned close to an ACTUAL car full of dynamite heading for the sun? I say yes.