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Category: volatility

Trader: ‘I Don’t Know How Else To Say It – It’s Different This Time’

February 13, 2018

“As I struggle to find the words to communicate my thoughts, I worry they will be misconstrued. Yet I don’t know how else to say it – except to blurt it out. So at the risk of being labeled a fool, here it goes - it’s different this time.”

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2 Comments on Trader: ‘I Don’t Know How Else To Say It – It’s Different This Time’

You’re Not Panicking Enough Yet.

February 12, 2018

Or, put differently, how much would it take to break the spirit of market participants who have been conditioned, Pavlov style, to buy any dip no matter how small?

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3 Comments on You’re Not Panicking Enough Yet.

Ray Dalio’s ‘Pretty Stupid’ People Are The Only Ones With Real Positive Returns In 2018

February 12, 2018February 12, 2018

“If you’re holding cash”…

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1 Comment on Ray Dalio’s ‘Pretty Stupid’ People Are The Only Ones With Real Positive Returns In 2018

‘People Were Laughing At Us’ – How One Fund Made 8,600% On ‘Vol-pocalypse Now’

February 10, 2018February 10, 2018

Then they went skiing. 

End of story.

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3 Comments on ‘People Were Laughing At Us’ – How One Fund Made 8,6003 On ‘Vol-pocalypse Now’

How Much Did CTAs And Risk Parity Sell During The Friday-Monday Bloodbath?

February 9, 2018February 9, 2018

There are lingering questions.

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12 Comments on How Much Did CTAs And Risk Parity Sell During The Friday-Monday Bloodbath?

The Psychedelic Swan Moment And Retail’s Volatility Addiction

February 8, 2018February 8, 2018

…that was a 23-standard deviation event. I’m not sure what color swan that is – maybe psychedelic?

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3 Comments on The Psychedelic Swan Moment And Retail’s Volatility Addiction

Good News! VIX ETP Rebalance Risk Really Isn’t A Problem Anymore!

February 8, 2018February 8, 2018

In that same kind of way where that festering hornets’ nest in your garage isn’t a problem anymore…

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4 Comments on Good News! VIX ETP Rebalance Risk Really Isn’t A Problem Anymore!

Seth Golden Doubles Down After XIV Blowup, Bets $600,000 VIX Will Fall

February 7, 2018February 7, 2018

“I was up until the wee hours, checking my phone to see where VIX futures were trading.”

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10 Comments on Seth Golden Doubles Down After XIV Blowup, Bets $600,000 VIX Will Fall

Cold Turkey: ‘Quitting The Low-Vol. Addiction May Be Painful’, One Bank Warns

February 7, 2018

“The market’s addiction to low volatility may be even more severe than its addiction to low rates.”

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1 Comment on Cold Turkey: ‘Quitting The Low-Vol. Addiction May Be Painful’, One Bank Warns

Why Cboe Is Plunging: ‘Retail Investors May Not Be Too Keen To Trade Volatility Anymore’

February 6, 2018February 6, 2018

“We suspect the retail investors that have been wiped out by this trade may not be too keen to trade volatility going forward.”

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1 Comment on Why Cboe Is Plunging: ‘Retail Investors May Not Be Too Keen To Trade Volatility Anymore’

Cboe Plummets Most On Record Amid VIX Fallout

February 6, 2018February 6, 2018

The fallout continues.

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1 Comment on Cboe Plummets Most On Record Amid VIX Fallout

Trader Asks: Was That The Greatest Squeeze In Market History?

February 6, 2018

“It seems like just yesterday the overly confident bulls were openly taunting any market participant that dared counsel about the increasing risks in the equity market.”

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1 Comment on Trader Asks: Was That The Greatest Squeeze In Market History?

Credit Suisse Pulls Plug On XIV – The Black Swan Has Landed

February 6, 2018February 6, 2018

It’s over folks.

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2 Comments on Credit Suisse Pulls Plug On XIV – The Black Swan Has Landed

The Demons Were Real: Monday’s VIX Carnage And The 13-Sigma Event

February 6, 2018February 6, 2018

And so, legions of retail investors, hordes of previously cock-sure newly-minted “money managers”, and scores of popular pundits who swore to you they knew what they were talking about, are left to ponder the stark reality of a market structure-driven nightmare scenario.

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8 Comments on The Demons Were Real: Monday’s VIX Carnage And The 13-Sigma Event

VIX Explodes To 50. That’s ‘5’ With A ‘0’ After It.

February 6, 2018February 6, 2018

Good luck, we’re all counting on you…

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2 Comments on VIX Explodes To 50. That’s ‘5’ With A ‘0’ After It.

Nightmare: Goldman Explains How VIX ETPs Activated The Doom Loop On Monday

February 6, 2018

“Come play with us Danny”…

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9 Comments on Nightmare: Goldman Explains How VIX ETPs Activated The Doom Loop On Monday

Hey Guys, It Looks Like XIV Is Done. The Short Vol. Products Are Toast.

February 5, 2018February 5, 2018

Look out. The unthinkable just happened.

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17 Comments on Hey Guys, It Looks Like XIV Is Done. The Short Vol. Products Are Toast.

NEXT! Vicious Vol. Spike Claims First Official Victim As Nomura Redeems Short Vol. ETN

February 5, 2018February 5, 2018

And for those who aren’t fluent, here’s how you say “you’re fucked” in Japanese:

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2 Comments on NEXT! Vicious Vol. Spike Claims First Official Victim As Nomura Redeems Short Vol. ETN

Black Monday.

February 5, 2018February 5, 2018

The bottom fell out.

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oil7 Comments on Black Monday.

Tail Risk And A Trip Back To The Shrinking Playground

February 3, 2018February 3, 2018

Maneuvering space, a (still) shrunken sandbox, and a step closer to the tail risk strike.

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The Most Volatile Month Since The Election And (Another) ‘Longest Ever’ Moment

January 31, 2018

More fun factoids.

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Blood On Tha Streetz.

January 30, 2018

Dip buyers assemble… you are needed.

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This Is The ‘Talk Of The Town’ In Markets – Can It Last?

January 26, 2018January 26, 2018

But fair warning to anyone who might be inclined to extrapolate on the way to drawing spurious conclusions…

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‘Smart’ Power: We Have ‘Never Been Further’ From Free Market Dynamics

January 25, 2018January 25, 2018

“Smart” power, one that aspires to be effective, cannot be restrictive; it must be permissive in order to eliminate a possibility of resistance. It should operate seductively and not repressively – it has to say “yes” more often than “no”.

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6 Comments on ‘Smart’ Power: We Have ‘Never Been Further’ From Free Market Dynamics

Barclays CEO: If Something ‘Snaps’, The Return Of Vol. Is Going To Be ‘Quite Something To Behold’

January 25, 2018January 25, 2018

It’s almost – almost – like this fucker gets it.

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Bitcoin And VIX Correlation Has Increased ‘Dramatically’: The ‘New Frontier Of Risk-Taking’

January 24, 2018

And there you go. Another way for cryptocurrencies to morph into a systemic risk…

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‘Vol Up, Spot Up’: This Hasn’t Happened In 20 Years…

January 24, 2018

That, or you could just buy expensive calls and pile them atop your existing longs because…

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