If You R Not Sh*tting Your Pants Then

Discussion in 'Trading' started by shortie, Jul 14, 2011.

  1. Short term mixed signals and lack of consensus return.
    The S&P500 long term megaphone top and bearish EURUSD big picture will however provide much needed consensus...
     
    #61     Jul 21, 2011
  2. can you feel the tension getting released?

    SPY 134.5 +1.4% VXX -5% VIX -10%
     
    #62     Jul 21, 2011
  3. Tsing Tao

    Tsing Tao

    You're still on about the S+P and Euro bearish picture, are you?

    At what point do you give up?
     
    #63     Jul 21, 2011
  4. Booming up today!!
     
    #64     Jul 21, 2011
  5. rew

    rew

    There sure are a lot of paranoid people out there. How is anyone going to manipulate the VIX? It's based on thousands of option prices for hundreds of stocks. Are you saying that the option market makers are deliberately selling options cheap to keep the VIX down? If so, buy straddles all day long.
     
    #65     Jul 21, 2011
  6. I have seen manipulation in VIX on the expiration settlement print. The VIX itself is not a dispersion of 100s of tickers, it's based upon the SPX options (the difference = the dispersion arb). I've seen massive (10s of thousands) of DOTM puts bought at the open on VIX SOQ which skewed the value significantly. Anyone who trades the VIX regularly has seen it.
     
    #66     Jul 21, 2011
  7. As seen in sticky chart at blog, monthly chart has been tracking sideways this year. This distribution and topping signifies that the big picture uptrend is ending and a significant downtrend will follow.
    http://stockmarket618.wordpress.com
     
    #67     Jul 21, 2011
  8. rew

    rew

    I don't doubt that manipulation at expiration sometimes occurs. (It can occur for RUT and other indexes as well.) But that is very different from what Nine Ender was suggesting -- that the VIX is kept artificially low day after day. That implies that MM are underpricing SPX options on a day to day basis. I can't imagine why they'd want to do that.
     
    #68     Jul 22, 2011
  9. to screw with Nine_Ender's head?
     
    #69     Jul 22, 2011
  10. Of course. That boy was dropped on his head.
     
    #70     Jul 22, 2011