GAZ above 150% of NAV

Discussion in 'Trading' started by Gueco, Mar 19, 2012.

  1. Gueco

    Gueco

    Gaz is being manipulated and TVIX as well.

    If you look at the biggest holders on those you might find a few interesting coincidences...
     
  2. Gueco

    Gueco

    GAZ was just halted for 10 minutes
     
  3. Gueco

    Gueco

    Halted a second time...
     
  4. Uhhh, so don't trade them? Or am I missing something? :confused:
     
  5. Gueco

    Gueco

    It is funny that everyone here was so upset about the Madoff's ponzi scheme but when they see another ponzi developing in front of their eyes they just don't care much.
     
  6. nocloud

    nocloud

    explain what is going on? how does it even get to 150% NAV?

    VXX. is that also being manipulated today? ^VIX hasn't dropped today, it actually rose, -7% in a single day is too extreme, even with contango.
     
  7. Gueco

    Gueco

    barclays stopped issuing new units so the arbitrage between GAZ and futures is broken...

    here is the NAV link

    http://finance.yahoo.com/q?s=^GAZ-IV&ql=1

    it can drop to $2.57 in a single minute if barclays reverses its decision
     
  8. nocloud

    nocloud

    what was the cause of the previous arbritrage between GAZ and futures?
     
  9. Gueco

    Gueco

    GAZ is an ETN, what kept it in line with the NAV was the possibility to issue new units and therefore perform an arbitrage.

    If the arbitrage is restored it will drop to $2.57 in an instant, everyone be careful.
     
  10. be careful trading a security based on another (e.g. vix future based on vix). true story - one time (no not at band camp) i was long uup calls and there was a temp shortage of units for the etf which caused a price spike and i was able to make 60% even though the DXY which is what it's based on didn't move. soon after the shortage of units was resolved like the next day the price of uup collapsed.

    point is these types of moves can help or hurt you but be on the safe side and always ask how they can hurt you.
     
    #10     Mar 20, 2012