Cramer says VIX is causing the market fall

thoughts?

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youtube.com/watch?v=V9EbPxTm5_s
youtube.com/watch?v=gMShFx5rThI
tradingview.com/chart/?symbol=XIV
twitter.com/SFWRedditGifs

Cramer is a fucking retard and wants more views

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LOL this is all you need to know about Cramer

youtube.com/watch?v=V9EbPxTm5_s

>thoughts
>(((Jim Cramer)))
>Early life. On February 10, 1955, Cramer was born in Wyndmoor, Pennsylvania, a suburb of Philadelphia. Cramer was born to Jewish parents. Cramer's mother, Louise A. Cramer, was an artist.
Oh, suddenly all his shitty advice makes sense.

kramer was just screaming BUY BUY BUY for monthd

now he's acting like he was SELL SELL SELL the whole time

wtf is VIX?

that means it will recover soon

doing the opposite of what kikes on TV say is a good investment strategy

Things must be bad on biz. It's bleeding into pol.

bump

buy Bear Stearns, Bear Stearns is doing fine

Volatility Index

$TVIX etn aka velicity shares etn

found the jidf

>Believing anything Cramer says
youtube.com/watch?v=gMShFx5rThI

>VIX
volatility ETN. today it was at ~115 but dipped and closed at 99. after close it crashed and right now it's about 15 lol.

Which is why I already have a hard on waiting for tomorrow, shit's gonna be lit af senpai.

I thought vix was measurement of market volatility, not a driver. That's like stamping your foot on the gas and blaming the speedometer for going 110.

it's bad fellas

>t. biz

>shorting the volatility index should cause the market to crash
this makes zero sense

Q predicted this

It's about expectation.
They call it the "fear index" for a reason.

which is why you wouldn't short it

>Watching Cramer
>Not Watching True Capitalist Radio

Fucking brainlets.

I wish some /stockfag/ would explain what Cramer is saying. I'm fucking retarded here.

Fuck me what does vapor rub have to do with this

shh don't ask questions goy

basically someone's algo has gone off the rails and is shorting the fuck out of an index that profits the more volatile the market is. Since the market is currently rather fucking volatile, shorting the index is an indicator that you think the market will be stable. Makes no sense. However that algo is likely triggering other algos to copy it and we're getting some runaway effects.

...eh. it's okay, not everyone has an IQ above room temperature.
You could make money folding towels somewhere I'm sure.

What is a VIX??? Why should I give a fuck?

Read the fucking thread god damn Americans are retarded

don t try to understand ((( their))) game . the stock market is a big scam . a scam against humanity . it s FUCKING INCREDIBLE how SOME NUMBERS on a screen DECIDE the fate of MILIONS OF PEOPLE , who loose their jobs , cause mr goldberg has failed a bank ... fuckin disgusting , capitalism should be destroyed and the stock market should be banned forever

Well then turn those damn machines off!!!

would you care to explain why shorting a volatility index during a time of high volatility is a smart move?

So what ur saying is drumpfs russian bots caused this

t CNN

precisely

Learning how to play good poker is likely better but the only thing that makes stocks worthwhile are 401k’s. If it were all post-tax, then fuck it.

Quasimodo?

Hate to break it to ya burger freund....but Your flag tells me you're here forever with us.

stock stuff is largely bullshit, seriously, other than if it seems low put some in and just chill back.

Voodo Science is a thing and financial analysis meets all the criteria for it.

Eventually though it becomes such bullshit that people wake up briefly, this is called a "correction" or "crash".

TLDR: The mechanisms and workings of stock market is bullshit BUT BUT BUT its implications for wealth ARE REAL. SOOOO, when it seems like everyone agrees the stock market is terrible put some money in and just chill for many years until people are talking about how great it is.

Tl;Dr
Shorting vix via various instruments to collect contango premium has become a crowded trade; now we see what happens when it blows up.

Lot of people here have no clue what they're talking about. VIX does try to track volatility in the market, but it's an index, meaning you can buy and sell it as an electronically traded fund (ETF). It spiked because the markets dropped rapidly today, increasing it by 115.6%. The short etn that mimics VIX in the opposite direction, VIN, crashed and is probably fucked.

The market freaked out for some reason last Wednesday, probably because the Treasury started pushing for more QT by actually doing what it said it was going to do this quarter. Equities stumbled and people got worried when stocks dropped for 3 days straight, likely causing algos and retail traders to start selling much more today.

so here's the thing, there is no such thing as the vix

well, there is, but the derivation describing its formation from S&P futures is a 30 page or so thesis that only PHD mathematicians can look at without having a stroke

so

basically Vix is just a working indicator of market shocks and panic. it's called the "fear gauge" because the higher it goes, the more fucked up and dangerous the market gets, and generally it goes down (though not always, sometimes it can just whipsaw)

anyway

the reason vix exists, besides its barometer function, is to allow companies to hedge against market downturns. you're worried about a crash? by some options that pay out if Vix goes up (volatility spike). if there's a crash, your principle is protected, if it doesn't, the options expire worthless, but hey, who cares, it's insurance, your principle is fine, you don't celebrate a car insurance payout comes through right?

anyway again

as the recent years past, there was very little volatility, so little that buy hedges against vol spikes was basically throwing your money away. if only you could "short the vix" aka, bet against anything dramatic happening. you can't REALLY do this, not easily, because Vix is again just a very esoteric math derivation/

HOWEVER - WHERE THERE IS A WILL THERE'S A WAY

banks made, whole cloth, derivatives based on the Vix derivative, volatilty exchange traded notes (ETN's) that allowed you (and by you i mean retail investors) to place direct bets using real money for or against the Vix. want to make a bet that Vix will go up? Buy UVXY? Want to bet it stays flat or goes down, XIV is your ticket. For years, buying and holding XIV was good, free, easy money, because nothing happened

Until it did

And here's the big problem

Because XIV is again a derivative of a derivative and basically an abominable amalgamation of financial terror, under duress, in extremis, it starts behaving it aberrant, very destructive ways. (continued)

XIV not VIN

>electronically traded fund
EXCHANGE traded fund, which is different that a MUTUAL fund.

MUTUAL fund = you actually own parts of stock that are in a basket.
EXCHANGE traded fund = you own a "stock" that represents parts of stock that are in a basket.

it starts behaving it aberrant, very destructive ways.

one such aberattion is that it's construction cannot continue once a certain Vix spike occurs. today's spike to 30 was very bad, but no where near the all time record and not the end of the world. But XIV was totally destroyed, as were all the retail investors that held it, and now Credit Suisse has a billion dollar whole in its account that it didn't before.

another problem, because these instruments have become so popular, many ETFs and hedges become dependent on their moves. Today's market crash started as normal selling but accelerated as mandated algo sales took over. Basically, as the market crash, hedge funds and ETFs are legally required to sell there positions to minimize their exposure. And suddenly it's an avanlanche.

So the question becomes, how many safety valves are getting blown right now? how many contingency plans have already failed? is the hedge against XIV's failure that Credit Suisse had in place already destroyed?

the reason that the market futures are down another thousand right now isn't just because rich boomers are pounding the sell keys (though they are). it's because a lot of internal, interrelated, very fucked up financial instruments held by very dumb people are beginning to warp out of control, and no one can say how much damage they're going to do before they reach entropic destruction.

maybe it's already over

maybe it's just beginning

What about XIV?

VICKS?

buuut im not ready for the world to crash

Seems legit

I literally just bought svxy today. I have been waiting for months for the vix to pop to buy this and now its down almost 80% after hours.

everything Cramer says the opposite is true

There are short volatility and volatility rose so much that it cause people to get margin called which forced people to sell positions to cover the margin.

This the etf that he is talking about. It is a risky etf but when it works it probably is the best trading tool. Those gains are tough to pass up. Until today of course.

tradingview.com/chart/?symbol=XIV

Is it Soros' fault? It's Soros' fault isn't it. How can he keep getting away with it.

...

its over. this is a tl;dr

XIV gains off of market stability. Market went crazy, it lost 90% in after hours trading. A drop of 80% means XIV gets liquidated because Credit Suisse (bank that runs it) set that as the limit to protect themselves in the event of something like this..

Read zerohedge. They've been talking about VIX for awhile now.

the vix is the volatility index and is a composite of like options being bought and sold.

volatility is basically like the demand on options, which does often coincide with big swings.

That's not how the stock market works. People don't lose their jobs because share prices fall. Except maybe CEOs

this is correct. the vix measures existing market conditions, not forecasts them.

>this makes zero sense
can't the vix be short-squeezed like the rest? enough people were speculating that the volatility would remain low (earnings continue to outperform) but the prospective of 3 fed rate hikes this year bumped the vix up and caused a short sell. the vix is a bizarre measure so it may not behave like a typical equity, so i'm not sure here.

this is incredibly misinformed. the "SOME NUMBERS" are a measure of information, not arbitrary. the equity market is, if nothing else, a measure of the information publicly available - present and future expectations.

stock markets will never be banned. they simply facilitate the exchange of ownership in companies for cash.

this is gay and retarded. the mechanisms of the stock market are very thoroughly documented. "corrections" and "crashes" are actually indicative that the market is efficient -- if people were always rational investors, maybe you wouldn't have them, but we're not and corrections are simply re-anchoring stock prices to more rational firm values.

this is filled with misinformation. it's measuring the volatility of futures prices. hedge funds have access to way better hedging instruments than the vix.

this

Wow, a german who doesn't know how money works. Must be a Turk.
>share prices fall
>corp unable to leverage shares for next loan
>has to maintain bottom line, looks to cost-cut
>100,000 pink slips emailed to bewildered workers
>economy takes a hit, causing share prices to fall again
>more layoffs
>enough starving peasant wagecucks willing to cut chicken for $3/hr
>anti immigrant sentiment soars
There used to be a cycle where someone gets the idea to hire because falling demand has reduced prices to a level where it's profitable to do business again, but that does not happen anymore in your country or mine.
>we are fucked

This is the plot of Money Monster but real! Im coming for you cramer!

Cramer is a fucking kike

Bond market uncertainty. Interest rate/inflation unknown, high valuations. Rich people don't care about high returns they invest to preserve money. They'll pull money out, figure out what the bond market is doing and then reenter. If they lose out on a bit of money, it doesn't matter. They're done with the wealth creation and are into the wealth preservation mode. For those of us who have money in the market but aren't actually wealthy, ignore it. Go outside the market goes up, it goes down and sometimes it goes to the side.

>corp unable to leverage shares for next loan
That's not how loans work

wait i meant XIV i guess i'm dyslexic

ehhhh

not a good source, Cramer is wrong most of the time. You literally get better results doing exactly the opposite of what he says.

>Cramer says

Literally as worthless as asking a random homeless person

Cramer is wrong literally 90%+ of the time. How can a jew be so, so bad with money? Unbelievable.

That said, this is a market correction. Economic fundamentals are solid and that is the actual cause of this. The new Fed chair is going to have to raise rates to wring some of this excess money out of the economy as it takes off so as to keep inflation under control. That is deflating the equities bubble that has been building for eight years because Obongo kept rates so low for so long to conceal the fact that the economy wasn't doing shit.

It's all coming down.

This guy is consistently.... ALWAYS wrong.

Red Shields are freaking out, selling everything, crashing the market with them.

XIV in after hours was at $15 earlier. To give you perspective, yesterday it was $116. They aren't the only vehicle of shorting the VIX but they are in an ETF as far as I know.
But to put it in perspective Credit Suisse is gonna lose like $5 billion because of XIV. It's also bad for institutional investors who have been exploiting this trade for the past few years as it's pretty much a 4x beta 95% correlation S&P 500 index (meaning you had a 95% correlation to the market but with 4x the market return). So now they're fucked. Dow futures are also down really big again. This is going to be interesting. Feds also raised interest rates recently and they also came out and said the equity market was over valued? They should never be saying that in the first place.

TL/DR: things are going to get interesting. Cramer is a cuck

hahahahahahahahahahahahahaha.....breath....hahahahahahahahahahahahahahaha

>shorting the VIX

I thought when VIX goes up, stocks go down. Is he referring to the inverse XIV?

It measures volatility in the market. Referred to commonly as the "fear index", that means when VIX goes up, get the hell out of the market.

He's garbage. He'll tell you to buy and sell at the wrong times.

> buying leveraged vix products on margin

shut the fuck up

Vapo-rub

How do you pronounce "VIX" out loud?

I read a ton about investing, but I never talk about it with other people, so I have a hard time knowing simple things like this. I don't wanna sound like a goy if I ever enter into a conversation about investing.

He wouldn't make that mistake. I'm guessing the really boring rally last year just led to a really overly low vix. Honestly vix spiking is the last big indicator of global turmoil so we might see that next.

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BUY THE DIP GOYS!!!!!!!!!!!!!!!!!
BUYBUYBUY!!!!
YOU FUCKING GOYIM DON'T UNDERSTAND WHAT WE ARE RUNNING!!! BUUUUUUUUUUYYYYYYY IT YOU FUCKING GOYIM STOP THINKING JUST BE GRREEDY .

It boggles my mind that anyone would buy a leveraged VIX or inverse VIX etn as a long term investment. If anything they should be used as extremely short term hedging bets.

VEE EYE EX

You must be a troll. No one is this stupid.
What do you think corporate working capital comes from, trees and signatures?

Yes more specifically the leveraged inverse VIX etns. What this boils down to is that leveraged derivatives of derivatives are shitty investments and when they get BTFO, institutional money sells equitites to try to cover their losses, this in turn triggers a mass sell off by retail money, then stop losses start triggering like today when the dow hit 25k a massive dive occured.

Hot

this predicted Q

BEAR STEARNS IS FINE