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Post by lasvegas77 on Jun 13, 2017 13:07:17 GMT -5
They had to sell $300k worth of vix futures to handle LV's order lol! you all can thank me.
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Post by theMist on Jun 13, 2017 13:07:55 GMT -5
Covered 10k out of 40k VXX short @ 12.99
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Post by walnut on Jun 13, 2017 13:10:03 GMT -5
Kind of looks like it is breaking below 13 haha
I'd resell below 13 with a little consolidation
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Post by lasvegas77 on Jun 13, 2017 13:10:16 GMT -5
Covered 10k out of 40k VXX short @ 12.99 good job mist. Now your original 12.90 should come.
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Post by walnut on Jun 13, 2017 13:12:39 GMT -5
dang 13 is incredibly tough support
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Post by theMist on Jun 13, 2017 13:20:56 GMT -5
Watching S&P Hourly, VXX 15 min chart VXX 15 min chartBBs closing in on price action -- nice move should be coming up and its usually down 15 min indicators also crossed bullish and VXX price action barely budged and price staying flat around 13 VXX 13.02
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Post by walnut on Jun 13, 2017 13:37:44 GMT -5
cool music from the year I was born. She was a fox
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Post by theMist on Jun 13, 2017 13:58:39 GMT -5
AG Sessions testimony on CNBC
Sounds like he's strongly denying everything
Didn't have private Russia meetings...
Collusion is a lie
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Post by lasvegas77 on Jun 13, 2017 14:12:34 GMT -5
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Post by lasvegas77 on Jun 13, 2017 14:13:26 GMT -5
Apparently the link doesn't work but you can just google the hadline and find it.
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Post by walnut on Jun 13, 2017 14:15:06 GMT -5
That link asks for money. You are a subscriber?
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Post by lasvegas77 on Jun 13, 2017 14:17:52 GMT -5
im not a subscriber. you can read the same article by google index snowballing power of the wall street fear index.
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Post by lasvegas77 on Jun 13, 2017 14:20:01 GMT -5
Wall Street’s “fear gauge” has neared all-time lows this year. That hasn’t stopped retail investor Jason Miller from making a nice chunk of change betting it will go even lower.
The Boca Raton, Florida, day trader says he has made $USUS53,000 ($70,000) since the start of the year by effectively shorting the CBOE Volatility Index, nicknamed the VIX. That includes a white-knuckle day on May 17, when the VIX spiked 46 per cent following reports that President Donald Trump had pressured former FBI Director James Comey to drop an investigation into former national security advisor Michael Flynn.
As Miller, 40, recalls, he rode out the storm, confident the market would revert to its torpid ways — which it did. “One person’s fear is another person’s opportunity,” says Miller.
Volatility — or the lack of it — has become the obsession of the markets as the S&P500 trades around its highest. Invented 24 years ago as a way to warn investors of an imminent crash, the VIX has morphed into a giant casino of its own. Volatility trading has wormed its way into many corners of the investing universe, including insurance products that guarantee retirement income and mutual funds that try to avoid the worst declines. Once the obscure province of academics and derivatives experts, volatility is now traded by would-be retirees alongside the most sophisticated hedge funds in the world.
Lately, the VIX has been signalling a near-complete absence of fear, and the preternatural calm is making some people nervous.
Opinion is split on whether it is a bullish signal for stocks or a worrying sign of complacency. After all, the VIX also approached a record low in early 2007, just before the subprime crisis began unspooling. In recent days the VIX nudged higher, rising more than 10 per cent, as tech stocks fell.
Becalmed stock markets have become a feature of the postcrisis world. Central bankers have lulled investors with record-low interest rates and flooded the market with cash. Even though the Federal Reserve is slowly withdrawing those supports, stocks have lost none of their appeal.
This leads to the VIX paradox: The lack of fear scares some investors who say bloated stock prices portend a painful reckoning when monetary policy tightens.
“They’re not adding to market stability. They’re just building a bigger bomb,” says Tom Chadwick, a New Hampshire financial adviser who uses VIX options to help protect his clients’ portfolios from downturns.
He says the Fed’s policies have kept volatility artificially low for so long that the speed of any reversal will be more severe. “When this goes, you’re going to see the mushroom cloud from Saturn.”
The VIX was conceived after the Black Monday crash in 1987, when the market fell 26 per cent in a single day. The measure used stockmarket bets, known as options, to gauge expectations for the speed and severity of market moves, or what traders call volatility. The CBOE launched the original index in 1993, and it quickly became a staple of the financial press.
It took Wall Street another decade to figure out the VIX wasn’t just a market weather vane but also a potential gold mine. In the northern summer of 2002, newly minted billionaire Mark Cuban called Goldman Sachs looking for a way to protect his fortune from a crash. Because the VIX typically rises when stocks fall, he wanted to use it as insurance.
Devesh Shah, the Goldman trader who fielded the call, says he instead offered him an arcane derivative called a “variance swap,” but Cuban wasn’t interested.
Lamenting the lost opportunity, Shah met up with Sandy Rattray, a Goldman colleague and erstwhile indexing buff with a knack for packaging investment products. What if, the pair speculated, they could tap the VIX brand and reformulate the index based on their esoteric swaps? Turning the VIX into something tradeable was nothing more than a math problem, says Rattray.
The pair rewrote the VIX formula, expanding it to a larger universe of stockmarket bets and making it possible to create a tradeable futures contract. Their equation synthesises thousands of trades and distils them all into a single number meant to represent the collective expectations for the market.
Shah and Rattray handed their invention to CBOE, the owner of the VIX trademark. The formula allowed the CBOE to cash in its marquee index. The exchange launched VIX futures in 2004, and VIX options two years later. The firm billed VIX trading as a new risk-management tool. Trading grew steadily, but slowly.
Then the financial crisis hit, serving up a huge marketing opportunity — more than $US5 trillion was erased from the S&P500, the only thing rising in the US was the VIX. Who wouldn’t pay just a little bit more to protect their nest egg from the wipeout?
At Barclays, a farsighted few realised access was a big problem. Trading futures and options was too complicated and costly for many investors. The bank instead devised a product that tracks VIX contracts but trades on an exchange just like any a corporate stock. Suddenly anyone with a brokerage account could trade like the pros.
The Barclays iPath S&P500 VIX Short-Term Futures ETN launched in January 2009, just months before the S&P500 hit a 12-year low.
VIX trading exploded. Terrified investors piled into Barclays’s new product and similar ones that followed, desperate for anything that might help them repair their dented fortunes. “I think of it as the great democratisation of volatility,” says Bill Speth, vice-president of research and product development at CBOE.
Amid the panic, investors were willing to pay to insure their portfolios. The costs would be a drag in bull markets, but looked like a small price to pay in the immediate wake of the crisis. “It was the Wild West,” says Bill Luby, who quit a 20-year consulting career in 2005 to become a full-time trader. “If you knew the landscape, there was a lot of money to be made.”
The Wall Street Journal
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Post by theMist on Jun 13, 2017 14:30:06 GMT -5
Nice EOD move in markets
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Post by theMist on Jun 13, 2017 15:00:49 GMT -5
Ya think VXX hit my 13 target?!
lmao
talk to you guys later
Order in to cover in AH now
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Post by lasvegas77 on Jun 13, 2017 15:49:56 GMT -5
vxx finally dropped decisively below 13 after hours of course. I'm gonna hold at least for the fed tomorrow and potentially further.
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Post by Herceg on Jun 13, 2017 17:03:36 GMT -5
Since I am home had to dip into AH trades...............out on some errands so missed a better entry but for <1 hour work, I'll take it..............ALXN on watch for tomorrow as well.............
HRB - 06:00:36 Bought to Cover 1000s @ $29.70 - Total: $29,704.45 HRB - 05:25:51 Sold Short 1000s @ $29.80 - Total: $29,794.80
~$90...........Good night to all...........
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Post by theMist on Jun 13, 2017 17:56:14 GMT -5
Jim's video
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Post by theMist on Jun 13, 2017 18:09:39 GMT -5
covering VXX at 12.93 in AH
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Post by walnut on Jun 13, 2017 18:26:30 GMT -5
Me too covered again at 12.94
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