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Strategies & Market Trends : John Pitera's Market Laboratory

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Davy Crockett
To: Davy Crockett who wrote (16869)3/25/2015 9:29:29 AM
From: The Ox1 Recommendation  Read Replies (2) of 33421
 
We just went through quadruple witching, with both VXX and XIV near nice round numbers, 25+35. Those are often large battleground or magnets, if you prefer. Add in the flash spike and it had to cause some serious pain for some.

Whether it's a targeted manipulation or a fluke, is tough to say.

There is no doubt that VIX,VXX seem weaker lately than one would expect based on the action in SPY. At the same time, we're dealing with short term options/futures and they don't have to "play nice" with the action in SPY.

If a number of large traders had their computers set to react to the spike, the next few days could be unwinding or rebalancing. Likewise, if it was a fat finger trade, then we could also see unusual action while the "burned party" licks their wounds....
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