Wednesday, September 2, 2015

2015 Flash Crash: Trapped In The Hotel Californication

Everyone thinks that THEY alone will get out ahead of everyone else, at the top. But unfortunately no one did. 

HALO Crash: The fastest decline from an all time high EVER

MW: Sept. 2, 2015
How The Largest Five Day Rise In The VIX EVER Trapped Stunned Bulltards

The Hotel Californication Visualized
The red line shows volatility inversion (backwardation). Blue line is VIX futures which always peaks AFTER the inversion event i.e. due to volatility short squeeze.

Lower pane, we see that the VIX had the fastest 5 day rate of change EVER as bulltards were caught napping. 

"It was a bad time for a third wave down at all degrees of trend. And Yen carry trade reversal. And global meltdown..."

aka. "Buying opportunity"