# Let’s keep this simple.
# FACT: The Fed is manipulating the VIX, among other things.
# FACT: The Fed is legally allowed to buy ETFs.
# FACT: No less than 7 new “VIX” related ETFs have been released over the last, say, 15 months. WHY???
# HOW: Along with the ways I’ve share before, they intervene in the markets.
Before you start, SAVE IT.
Here is undeniable proof.
# THE FED IS USING ETF’s TO FLATTEN THE VIX.
Which ones? UVXY, VXX – go look the other “VIX” ETFs up. I’m not doing more work for you.
# PROOF:
https://preview.redd.it/2r90hbq8om2b1.png?width=1055&format=png&auto=webp&v=enabled&s=6610f1076bb760dbdf60cd2f83e5078bf4caa97b
**Bottom of page 193 of FOMC October 23-24, 2012 Meeting**
Here’s the link to the report: [FOMC Meeting Transcript, October 23-24, 2012](https://www.federalreserve.gov/monetarypolicy/files/fomc20121024meeting.pdf)
Go ahead. Argue the point. It’s useless. The Fed admitted they did it before. Why would this time be different?? I know some of you don’t care about this. But you should.
Because market manipulation makes it very difficult to make money from investing, unless you are the one doing the manipulating.
Now I know we have a lot of millionaire YOLO traders here so you can stop reading.
But for those of us mere mortals who invest and trade, this matters. A lot. Because artificially suppressing the VIX is incredibly damaging to the structure of the markets. And its morally reprehensible because who foots the bill: we do.
This is undeniable proof that the markets are rigged to take YOUR money and give it to THEM. Its called WEALTH TRANSFER. Or as I call it, a TAX.
Look, I post here bc I hope that maybe what I post might help a few to understand and to protect their money. To prepare. Because when this unwinds, its going to be like something you have not ever seen.
I don’t know when. Or what the trigger will be. But it will unwind.
I will endeavor to respond to those comments I deem to be constructive
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Not being sarcastic: If you are sure of this, place your bets
The Odte fd market has made the VIX ineffective so the cboe came up with the vix1d so that market volatility can be gauged day to day
Timing the unwind is the challenge. You’d have to figure out what would make them lose control of the short ie some kind of liquidity event, or another series of bank failures. You could also just short the VIX along with them. AKA If you can’t beat them, join them.
The market is rubbed l rigged. Your job as a trader is to account for the rigging.
This is awful DD. They are talking about unloading their MBS position in 2012. Keep in mind they just went through a period of QE large balance sheet increases. Reducing their MBS position will reduce duration. Unloading short vol positions is in relation to the MBS position, they are likely not referring to equity vol.
Op has no idea how the VIX is even calculated. If the fed indeed is claiming to be short equity vol then it would need to be long VIX puts or short VIX calls. Or more effectively have a net short position in shorter dated SPX options.
The fed does not buy equities and they have only ever bought corp debt in very small amounts. This DD is worse than the stock recommendations from my Wendy’s shift leader.
You say things like “FACT”. I do not think it means what *you* think it means.
FACT: Bears eat beats
Get the lube! We got a juicy spiracy’ fresh off the press!
Man, proof doesn’t mean what it used, huh. FOMC gives an example of the potential market impact of closing a short volatility position on mortgage backed securities, and op thinks it’s proof the fed is manipulating VIX to fuck his calls lol. Bold text and everything so you know he’s super serious!
Everybody’s been saying for years that S&P volatility isn’t behaving like the “fear index” it used to be. Sorry you suck at trading I guess.
Dann will this increase the price of Vix Vaporub?
God I would love a good old fashioned face ripping VIX spike.
I think the system has been rigged for awhile, they can just take it through taxing the bottom 90% and give tax exemptions to the ultra wealthy. They don’t need to manipulate the market when 90% of it is owned by the top 10%. And the odds of the debt ceiling raise was high especially with how many 2-faced lizard democrats there are. They could’ve used the 14th but they pussed out and agreed to fuck the poor as usual. Because they’ll happily sell out and ruin the lives of MILLIONS to get a sweet crisp $10,000 cheque…
Wait a second, isn’t a market that’s manipulated consistently in one direction the easiest market to predict? Just like that guy who made a ton of money front running FTX’s predictable rebalancing trades. Also, why would the Fed suddenly have to stop doing something they want to do? There’s no moral police out there that swoops in like Robin Hood to save the day.
So if you know the Fed is going to suppress the VIX, why not short it every time it spikes?
Username checks out.
you use the vix. I use one chart with volume and RSI. I don’t even look at vix.
I came to your conclusion almost two weeks ago… I am assuming to be an ancient version of a day trader.
stay calm.
keep your money good. 
Wasn’t Jamie demon or some other big wig came out and said VIX is not a good indicator of volatility anymore? I think it’s an open secret. So I am in total agreement with you, it’s only one of the mechanisms they used to manipulate the market. They simply cannot afford for the lines to go down. Also don’t be disheartened by the ‘bulls’ here. It’s all part of their bot campaign on this sub and r/politics and r/worldnews
This post gave me cancer.
Point on the bear where the Fed touched you, OP. Everything will be ok. We won’t be mad at you.
This is the biggest bullshit I’ve read in some time, congrats bro! In difference to a NASDAQ ETF or sth else, the VIX isn’t affected by the derived ETFs you are talking about. If I buy a ETF on some index like the Dow Jones, the fund manager gets my money and now has to split it onto DJ shares just like the underlying shares compile the DJ at the current time. So if AMEX currently makes up for 3.11% of the calculation of the Dow Jones, 3.11 USD of those 100 USD I’ve just put into an iShares DJ ETF, have to be used to buy the corresponding shares in order to generate an image of the DJ. Therefore more money in DJ ETFs pumps up the DJ because shares of Dow Jones Members have to be bought with it.
The VIX, on the other hand, is nothing but a mathematical formular made up by the Chicago Stock Exchange. You can compare it to a weather station: You can bet on how many degrees it’ll be tomorrow, but your input wont change the actual weather. If the market is volatile (many stocks change the owner) it goes up and if its not volatile, it goes down. It is true that there are ETFs and Derivates whose basis is the VIX but putting money in them wont affect any real stocks or the current value of the VIX. Its just a gamble against some big bank where one says it will go up and the other one says it will go down. Naturally, the bank wins at the end, due to the inverting curve of any VIX ETFs that is caused by the future roll over costs (in options banks always win, because well they are options).
Hope I could help, pls don’t be mad. All the best for your future trades!
>This is undeniable proof that the markets are rigged to take YOUR money
Then GTFO if you think it’s rigged.
Yep, SQQQ to 5000$ when this uncoils.
The feds manipulating the entire market, and they are telling you that, not sure why any of this is a surprise.
How do you believe the “debt ceiling” talk will affect your Vix calls that could be the event to push the Vix higher.
Wouldn’t it make more sense that the vol position was a swap considering the huge position?
Good for JEPI
I recently bought $17 VIX calls at $16.88, a week later at $19.50, the calls were barely profitable.
Not only that: The gold market has been a immanent threat to the dollar and the amount of gold that is traded has basically skyrocketed since the 70s to a multiple of all gold available on earth.
Yea they plotting against you. It’s one big conspiracy to get you to lose money on your bet. They know you bought calls on the Vix. They all should be locked up. You should take your ball and go home damnit The Cheaters not playing fair. Those bastards
They using ai tool.
[https://twitter.com/frankoz95967943/status/1658603789115625473](https://twitter.com/frankoz95967943/status/1658603789115625473)
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Further proof – and this is what happened last time jPow got involved in vix suppression.
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So you know – vix suppression is inflationary.
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Everyone know’s the market is manipulated but what are you or anyone else going to do about it?
Nothing..
Why worry about something that is out of your and everyone else’s control?
Man bears getting desperate
Your tim foil hat needs adjusting.. a “short volatility position” doesn’t necessarily mean puts on UVXY or even VIX.
Your premise is ridiculous. But your underlying suspicious on the direction of volatility may be correct even if your premise is distorting the truth. My suggestion would be to follow your nose and make money accordingly. Hopefully, you can see that you wont win against the fed.
Don’t forget the hedge funds and those darn short ladder attacks and t+2 settlement delay coupled with naked shorting
/s
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Okay so would holding shares in say UVXY be a good bet in your summations and if so why or why not? And what will trigger this unwinding?
I was a VXX bagholder. I don’t trust any VIX ETFs after that. I predicted the movement of the VIX perfectly, but the friggin investment bank that made the ETF screwed it up and wasn’t allowed to issue shares to track it anymore. So, I lost a bundle. I imagine there will be a lawsuit and I’ll get like $2.86
how long has the fed been around? how long has the VIX been around?
stop trying to convince regards to burn their money with you ffs.
VIX is a trash long term play. Always has been.
Whatever
The FED has to report all postions. I haven’t looked in a long time. Has the FEDs holdings of ETFs increased?
Wealth transfer has been going on since the beginning of time, the market has been volatile for a long time. The only proof I see is you might be getting smoked on your trades