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Author has a degree in Engineering and is an avid investor in the market. Experience in industrial materials and structures. In college studied atomic & nuclear physics as well as material engineering. Eastern European
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  • Days after FED. announces $300B more buying after QE2, we have massive redemptions in VIX ETF's
    Fed May Buy $300 Billion in Treasuries After QE2
    By Daniel Kruger and John Detrixhe -
    Jun 27, 2011 7:15 AM ET
    -------------------------------------

    After the news above occurred, these actions followed quickly below:

    ------------------------------------

    VZZ, which had $12.8 million in assets as of June 30, was halted by Arca, the New York Stock Exchange’s electronic trading platform, after the ETN fell to $9.98 a share. That was $1.82, or 15 percent lower on the day.

    The actual redemption date is the “fifth business day following the automatic termination date,” according to the press release. The company said further details about the automatic redemption, including the redemption value, will be made public on iPath’s website as soon as possible after the close of business on July 1.

    The notes were brought to market in November 2009. Their price had fallen by more than 50 percent in the past six months and by more than 60 percent in the past year.
     

    The midterm volatility ETN, VXZ, as noted, was also trading more than 4 percent lower on Friday afternoon, at $48.04 a share. It has declined more than 20 percent in the past six months and more than 40 percent in the past two years. It too was launched in January 2009.

    But it’s also had success gathering assets, though it had an usually large redemption on Wednesday, of more than $257 million, or about a third of its assets. It wasn’t immediately clear what prompted such a large and unusual shift in assets. It had $526.2 million in assets as of June 30.

    http://finance.yahoo.com/news/Barclays-To-Redeem-VZZ-Due-To-indexuniverse-2863215893.html?x=0&.v=10

     


    Jul 10 11:28 PM | Link | Comment!
  • Hedge funds love shorting VIX ETF's
    Its the easiest short that exists on wall street.

    Yes short term they could have days when they could lose money, but in the end you always make money shorting VIX ETF's its almost criminal how easy it is.
    Jun 30 10:33 AM | Link | Comment!
  • They fooled the retail guys into selling in May again with QE2 ending scares for June.
    Now they are telling the retail guys that QE2 really does not end in JUNE because they have $300 Billion in easing coming after June 30th.

    Now that they fooled the retail folks into selling, they are probably buying now just days ahead of June 30th to take advantage of the scare of QE2 ending.

    Fed May Buy $300 Billion in Treasuries After QE2 By Daniel Kruger and John Detrixhe - Jun 27, 2011 7:15 AM ET

    While the $600 billion purchase program, known as QE2, winds down, the Fed said June 22 that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. That could mean purchases of as much as $300 billion of government debt over the next 12 months without adding money to the financial system.
    Tags: TNA, SPXL, MIDU, VXX, TVIX, VXZ, AAPL, IBM, HPQ, MSFT, GOOG, AMD, INTC, KLAC, TZOO, PCLN, NFLX, AMZN, WMT, M, F, GM, TM, HMC, WLT, CLF, ANR, MOS, POT, AGU, CF, ROC, SQM, FMC, FFIV, VMW, CRM, CAT, DE, PPO, POL, DOW, MET, BAC, C, BRK.B, BRK.A, GS, MS, V
    Jun 27 10:06 AM | Link | Comment!
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