2x Long VIX Futures ETF (UVIX)

[tw0122]

Wall Street On Parade has been witnessing a persistent new pattern in the stock market for several months now where the market plunges at the open and then shortly thereafter, on no major news, it turns on a dime and spikes higher. This suggests one of two things to us: (1) either the New York Fed is manipulating stock trading out of its second office close to the futures markets in Chicago; or (2) big money at Wall Street trading houses and/or hedge funds are doing it. Either way, the SEC and the Justice Department have not nipped this activity in the bud.


On January 31, Wall Street On Parade reported that the New York Fed, which is the only one of the 12 regional Federal Reserve banks to have a trading floor – complete with those expensive Bloomberg data terminals and speed dials to Wall Street’s biggest trading houses – had decided, after 100 years of operation, that it needed a second trading floor in Chicago where S&P 500 futures are traded along with other futures contracts.

Wall Street On Parade has documented the bizarre price moves in the Dow Jones Industrial Average since March. Nothing about this is normal. If this is allowed to continue and the SEC does not explain, with credible details, who is behind these moves, what’s left of confidence in U.S. markets is going to evaporate.