The FED must be manooopolating the markets & TVIX (especially TV - The SEC is in cahoots, and it's all because of Obooma.
I always just pretend that comments like this are intended as a joke and then the world makes sense to me and I can easily go about day. In the course of that day. however, I would never never throw a plug nickel at TVIX.
By "making new paper" i don't suppose you are referring to the worthless unsecured derivatibve TVIX notes being issued and/or retired all day long to sustain the illusion that it is somehow linked to the underlying index?
You can't actually "see" Level 3. But you can feel it brother.
actually dibari, VIX futures are only up half a percent today (15.43), but then we're halfways through the contract term averaging May and June.
Maybe some of the BIG BUYERS on Level II are MMs who have lost their Level 3 connection, and are now accumulating TVIX notes around the 260-week bottom ~ the 260 is always a good time to buy.
MMs ?? TVIX ? Sometimes i feel i've just slipped through the looking glass into an alternate stock reality.
(Hard to believe but the whole world, including the EU, is focused on TVIX these days... the Brexit referendum is getting fixed as we speak.)
What MMs? I can't swear on this, but i'm guessing Credit Suisse was the only book runner back in 2010.
"They" are the Seven Dwarfs, of course. Try to speak directly jwtechy ~ not everyone here knows the story.
It has always "look like the shorts can do no wrong"... from day one. That's because TVIX has zero fundamental value. "When the house comes down". TVIX will continue to have no fundamental value, but at that stage even the arbitrage traders will have evacuated. In an economic meltdown, the junk notes get delisted first.
There are no naked short sellers of TVIX ~ In fact there is an abundance of neg shares available at almost any time.
"almost 40% down in less than a month. Anyone care to guess where the bottom is?"
~ Down 99.9998% since 2011... look at the chart. What makes you think there is a bottom to TVIX? It heads back to zero every 18 months or so, and then does a reverse split. Sorry, no bottom.
dibari, the note is already worthless, and that's why it always retrace to zero. It's a derivative of a derivative, without security or fundamental value, and without any productive business model -- It's a simulacrum, a trading illusion created by Credit Suisse. It's worth nothing in a healthy economic environment, and less than nothing in the event of an economic crash. In the event of an economic crash, investors would be well advised to divest themselves of weak or dubious investment positions, and there is no junkier position than TVIX.