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Nightmare: Goldman Explains How VIX ETPs Activated The Doom Loop On Monday
So about that "doom loop."
We've got an entire section here on HR dedicated to what we've variously described as the "nightmare scenario" for a market that we've argued is vulnerable to a technical selloff thanks to a kind of domino effect, where a nominally small VIX spike has the potential to echo through markets, culminating in a veritable disaster.
Our last warning about that came on January 11 in a piece called "‘The Biggest Risk Is A Quick SPX Selloff At The End Of The Day’: It’s T
Quite possibly the longest “I told you so” I’ve ever read.
W.W. / H – I’m glad you were/are.
Thanks, doin’ alright.
Do we buy VXX this morning to join in on the final?
Fun**
it is hard to express my gratitude for your teachings.
following you for a good long while has been one of my greats pleasures.
literary 100’s of reading and studying hrs because i didn’t understand.
took a lot of flack for trading friends–when i started getting short late 2016.
2 other authors that i follow also nailed it–tho one was very early.
a funny note, he said if the xiv got really high we will short it–too late to that party.
the other called in february for a substantial pull back. the rest is history. i think i will book profits early, assuming–us little guys can trade.
i too have educationed others–i have had only a small hand full of success.
thanks Mr. H. i raise my glass.
sb
…thanks for taking us thru the 30,000 foot view here @HR!
Maybe today after the dive, the pilot(s) can execute a rollover in the last few minutes before impact.
Just sayin …
Thanks for the great explanation of a really confusing subject! I think I will go to Walmart too after trying to understand all this. You r sooo funny! I even laughed yesterday!