Jim Cramer is apparently still riding the sugar high from the Eagles Super Bowl victory because heading into the close on Friday, he unleashed a Donald Trump-ish tweet storm aimed at TVIX holders who he is hell-bent on wiping out for having the audacity to make a leveraged bet on the VIX continuing to rise.
Like the rest of us, Cramer has spent this week trying to pick up the pieces from the implosion of XIV and the decimation of SVXY and while it’s all fine and good for him to try and explain to retail investors what happened on Monday, what would have been even better is if he had been sounding the alarm on the VIX ETP rebalance risk sometime last year when every sellside desk on the Street was shouting from the rooftops about how large the vega-to-buy was getting and how that flow had the potential to supercharge a VIX spike.
So having failed to warn everyone ahead of time that eventually, that rebalance risk was going to materialize on the way to slaughtering us all, he’s now decided to tilt at windmills and here’s what that entailed on Friday afternoon:
That’s what it’s come to, folks.
Cramer channeling his younger hedge fund self and wielding his Twitter assault rifle to jawbone the market higher into the close via a cartoonish attack on TVIX holders who, by the way, have already been wiped out multiple times over the past several years.
Now, during the week they finally got their big break, the guy who told you Bear Stearns was “fine” is on Twitter trying to tweet them back to zero so he can make sure Nvidia closes on the highs.
Fly Eagles, Fly!!