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
19,527 Blog Posts

Wall Street Freaks Out As Market Hits Air Pocket and Clown Crashes

Cramer is sperging out on CNBC because of the Dow gapping lower by 1500. He believes it’s all fake, a byproduct of machines running stocks. While that might be true, you cannot enjoy the fruits of the robot market without enduring its poisons. We are crashing because people aren’t trading stocks, only algorithmic trading.

As such, I find it hard to believe we will not retest those lows. Since I’m already long a bunch of shit, I threw down a hedge in my tactical account, which will be sold tomorrow, buying SOXS — short semis.

You’ve got to stop bitching about the market going down when all we saw was upside for the past year. Come on already with your sanctimonious bullshit, Cramer.

The Dow is off by 800 now. Cramer is mocking people for selling when it was down 1,600, calling them ‘morons.’

So what happens when the Dow retests the lows? Will Cramer apologize?

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63 comments

  1. tonka

    Doesn’t matter that we’re <10% off all time highs. When the VIX starts gapping intra-day, it's as bad as it gets. Total shutdown in the options market.

    Wouldn't touch VIX products with a 10 foot pole here. A LOT of contracts have to change hands at the close to re-balance.

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  2. sarcrilege

    Exactly. When mawket goes up relentlessly every trading day, it’s glory days. When it corrects 2%, it’s TEOTWAWKI. You kindergarten kiddies are pathetic. It’ll go to all time high in no time. Patience Grasshoppers.

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    • bob smith

      I don’t know why people are freaking out. This is like a small snowball gently rolling down the mountain.

      Wait until the avalanche starts…

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  3. ironturd

    The grandkids are gonna love the crypto and vol short inheritance

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  4. tradingnymph

    Hi Fly.

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  5. og

    Can we get grandma back?

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  6. teslawasright

    Perhaps the Fly shall partake in a fair amount of Talisker this evening?

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  7. ferd

    Bought some XLE below $69 …nice support area.

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  8. WrongView

    I can hardly wait to hear POTUS explanation. Stock gods angry because Mueller investigation continues?

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  9. jonnybegood2

    wow that was intense.

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  10. roundwego

    Quant’s trigger down momentum in vapor thin market. Shit can get ugly fast.

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  11. edge

    OK, here’s what’s happening IMO. People just got overconfident, odd thing is, the fundamentals are fine, and the market isn’t grossly overvalued… I can’t say what the correct move is. Very odd, I don’t know what to compare this market to.
    87 maybe? If so, should correct fast. (Bull market corrections are usually fast and scary). We will see.

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    • bob smith

      Ok, here’s what’s happening IMO. The game is over… and it was a game. Sure, we will have explosive counter moves to the upside. These should be sold.

      Those old dusty DOW 10,000 hats will be used again. It will take time of course, but it’s going to happen.

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      • edge

        Yeah, I’m not saying that a bull market scenario is a sure thing. I’m watching…Just saying that the odds are for MOAR.

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    • edge

      I think what I see is that even with the right fundamentals, there is still a speed limit, and it was exceeded. Maybe a first.
      As long as the recovery time isn’t too long, buy. But if this drags on long enough- beware of changes.

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    • soupbone

      this is the game in play. classic money game and not anywhere near over.

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  12. roundwego

    Japan is complete basket case.

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  13. bennyhill

    So does Exodus still have you in XIV? 45% down today??

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  14. stocksnblondes

    XIV is down to 70 after hours. Wow. Your great, great grandchildren must not be too happy.

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    • bob smith

      XIV approaching “no bid” in AH.

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      • stocksnblondes

        Now its down to 44. Is that even possible?

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        • bob smith

          That’s my XIV buy order at $3. Don’t laugh, I got filled on a number of these AH lowball trades years ago. The PTB broke some of them because they were so far “out of range” but I got to keep some too and made a mint in 24 hours.

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      • edge

        Fuck! I’d pay the goddamned ah bid but the asshole brokers won’t let me!

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        • stocksnblondes

          They are doing you a favor and saving you from yourself. Do you always leap before you look? XIV is broken.

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  15. awanka

    You are in your element, Mr. Fly. Market crashes are when you do your finest work. My snout is tingling.

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  16. Marc David

    HODL?

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  17. og

    XIV just broke AH.

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  18. numbersgame

    Check out the aftermarket: bonds, stocks, etc.

    Down 4%, and the crash isn’t even over.

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  19. roundwego

    i think they finally lost control. funny kyle bass missed it by a decade.

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  20. chuck bennett

    VIX flashing like a stripper

    How is this possible ?

    What are we missing?

    Regards

    Chuck Bennett

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  21. chuck bennett

    XIV at 36?

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    • john_galt

      Mwuahahahahaha.
      The Maggot’s on suicide watch

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    • bob smith

      Has to go to 36 before it goes to 136. Math…

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    • jonnybegood2

      holy shit. insanity. hope Fly dumped his XIV before the close. I am away from the news so no idea WTF happened.

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  22. roundwego

    fed induced short volatility for nine years is being unwound. shit is getting real.

    https://www.zerohedge.com/news/2018-02-05/it-traders-panic-xiv-disintegrates-after-close

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  23. Lyndon Keltner

    Thanks, Trump. That sure was awesome.

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    • edge

      This is the last kernel of wisdom that I will impart upon you for the night. Unless I change my mind.
      Have some drinks. Reflect on what what you could have done better, but don’t beat yourself up. Go get a good meal.
      Then jump.
      Nah. In a couple months you will have to think hard to recall what happened.

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      • bob smith

        “In a couple months you will have to think hard to recall what happened.”

        Yeah, the beauty of antipsychotics mixed with alcohol… What would we do without them?

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  24. juice

    For $XIV the termination event is triggered if the daily percentage drop exceeds 80%.

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  25. numbersgame

    So let’s see, if an index goes +115%, then an inverese ETN should go to -115%? Wait….

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  26. stocksnblondes

    It could be worse, guys. You could hold XIV and be down almost 70% on it after hours.

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  27. jonnybegood2

    i’d buy the XIV after hours now if i knew WTF was going on.

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    • edge

      It’s a freak out. Your broker probably won’t allow you to buy it anyway. Scottrade and Fidelity shut me out.

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    • bob smith

      I pulled my bid. If a termination event is triggered, all holdings are worth exactly ZERO no matter how low you bought it.

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  28. juice

    When underlying furture contracts (VIX) ramps more than 80% in a day, $XIV can liquidate up to equal or less than 20% of prior’s day. It’s not a glitch, it’s liquidation

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  29. insp cluso to you
    insp cluso to you

    What happens if overnight events keep the $VIX from increasing, or VIX drops?

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