ETF, VIX, Volatility

VelocityShares(SM) Launches First Family of Leveraged Volatility-Related Exchange Traded Notes Linked to S&P 500 VIX Futures™ Index

NEW YORK, Nov. 22, 2010 /PRNewswire/ -- VelocityShares LLC, creator of exchange traded products for professional traders, announced today the launch of six volatility-related Exchange Traded Notes (ETNs) to be listed on NYSE Arca. The new VelocityShares(SM) ETNs include the first daily inverse and 2x leveraged ETNs linked to the S&P 500 VIX Futures™ Index. The ETNs will provide institutional traders with an exchange traded instrument enabling them to manage equity market volatility risks.

"We are committed to developing innovative products for the professional trading community," said Greg King, Chief Executive Officer of VelocityShares. "This suite of ETNs gives traders their first opportunity to access daily rebalanced leveraged and inverse exposure to an S&P 500 VIX Futures™ Index via an exchange traded product."

Credit Suisse AG is the issuer of the ETNs and VLS Securities LLC, a wholly owned subsidiary of VelocityShares LLC, is marketing the ETNs.

The TVIX and TVIZ ETNs allow traders to manage daily trading risks using a 2x leveraged view on the S&P VIX Short-Term Futures™ Index and S&P 500 VIX Mid-Term Futures™ Index, respectively, while the XIV and ZIV ETNs enable traders to manage daily trading risks using an inverse position on the direction of the volatility indices. The indices were created by Standard & Poor's Financial Services LLC, a division of the McGraw Hill-Companies, Inc.

Exchange Traded Note	Ticker
VelocityShares Daily Inverse VIX Short-Term ETN	XIV
VelocityShares Daily Inverse VIX Medium-Term ETN	ZIV
VelocityShares VIX Short-Term ETN	VIIX
VelocityShares VIX Medium-Term ETN	VIIZ
VelocityShares Daily 2x VIX Short-Term ETN	TVIX
VelocityShares Daily 2x VIX Medium-Term ETN	TVIZ

The ETNs, and in particular the 2x Long ETNs, are intended to be trading tools for sophisticated investors to manage daily trading risks. They are designed to achieve their stated investment objectives on a daily basis, but their performance over longer periods of time can differ significantly from their stated daily objectives. Investors should actively and frequently monitor their investments in the ETNs. Although we intend to list the ETNs on NYSE Arca, a trading market for the ETNs may not develop.

Credit Suisse AG has filed a registration statement (including a prospectus) with the SEC for the offerings to which this communication relates. Before you invest, you should read the prospectus and other documents Credit Suisse AG has filed with the SEC for more complete information about the issuer and the offerings. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Credit Suisse AG (1-800-221-1037), VLS Securities LLC, or any agent or dealer participating in the offerings will arrange to send you the prospectus and other applicable documents if you request it.

An investment in VelocityShares ETNs involves risks, including possible loss of principal. For a description of the main risks see "Risk Factors" in the applicable prospectus.

The ETNs (the "Securities") are senior unsecured securities issued by Credit Suisse AG through its Nassau branch. The Securities are riskier than ordinary unsecured debt securities and have no principal protection. Any payment on the Securities is subject to the ability of Credit Suisse AG to satisfy its obligations as they become due. The return on the Securities is linked to the performance of a market index. Investing in the Securities is not equivalent to investing directly in index components or the relevant index itself. Because the Inverse ETNs and 2x Long ETNs are linked to the daily performance of the applicable underlying Index and include either inverse or leveraged exposure, changes in the market price of the underlying futures will have a greater likelihood of causing such ETNs to be worth zero than if such ETNs were not linked to the inverse or leveraged return of the applicable underlying Index. The ETNs include restrictions on the minimum number of ETNs that can be redeemed, the dates they can be redeemed, an early redemption charge, do not guarantee any return of principal at maturity and do not pay any interest during their term.

The market value of the Securities may be influenced by many unpredictable factors. Risks include limited portfolio diversification, uncertain principal repayment, and illiquidity. Also, the investor fee will reduce the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of your investment at maturity or upon redemption of your Securities even if the value of the relevant index has increased.

Brokerage commissions will apply to purchases and sales of the Securities in the secondary market. The sale, redemption or maturity of the Securities will generate tax consequences. The trading prices of the Securities will reflect changes in their intrinsic value as well as market supply and demand, among other factors. The trading prices of the Securities may also be influenced by changes in the credit rating of Credit Suisse AG.

About VelocityShares

VelocityShares creates exchange traded products (ETPs) for sophisticated traders. The focus is to provide unique instruments to assist traders in managing their market views, risks, and desired exposures. The team has significant experience on both the buy-side and sell-side of the financial markets, and encompasses a broad range of financial services including, ETNs, ETFs, equities, commodities, fixed income, and index creation and management. Employing that combined knowledge and insight enables VelocityShares to develop and deliver innovative products. In 2006, members of the senior management team pioneered the launch of the first Exchange Traded Note (ETN). For additional information about VelocityShares please see: www.velocityshares.com. Information contained in the VelocityShares website is not incorporated by reference in, and should not be considered a part of, this free writing prospectus or any pricing supplement of Credit Suisse AG, and to the extent any of such information has not been filed by Credit Suisse AG, Credit Suisse AG has not participated in the preparation of, or verified, such publicly available information.

"Standard & Poor's®", "S&P®", "S&P 500®", "Standard & Poor's 500™", "S&P 500 VIX Short-Term Futures™" and "S&P 500 VIX Mid-Term Futures™" are trademarks of Standard & Poor's Financial Services LLC ("S&P") and have been licensed for use by Credit Suisse AG, VelocityShares LLC, and VLS Securities LLC. "VIX" is a trademark of the Chicago Board Options Exchange, Incorporated ("CBOE") and has been licensed for use by S&P. The ETNs are not sponsored, endorsed, sold or promoted by S&P or CBOE and S&P and CBOE make no representation regarding the advisability of investing in the ETNs.

http://www.prnewswire.com/news-releases/velocitysharessm-launches-first-family-of-leveraged-volatility-related-exchange-traded-notes-linked-to-sp-500-vix-futures-index-109882494.html

Volatility

VIX/VXN breakout day?

Volatility traded to VIX/VXN, 27.01/27.65, respectively; and, retrieved from the downtrend resistances.

It could breakout today if the FED does not minister more doses of co/cain/e hype to markets.

VIX/VXN - a completely controlled markets melted numb while unemployment is sky rocketing

VIX/VXN - a completely controlled markets by nuked and melted numb while unemployment is sky rocketing -- only what the Fed knows what to do is pumping markets with printing machine devaluing everything except soaking recycled money back into the back pockets.

New lows 25.76/26.35

TRINQ 0.187

TRINQ 0.187 which is extremely low reading.

The Fed/Obomb tranquilizer shot markets to fool many with debt spending false hope, then, robs millions to go bankrupt and the nation.

Volatility & Quad OE

VIX/VXN bounce/reversal from the IT supports.
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VIX /VXN Low volatility readings to VIX 26.57 / VXN 27.87

http://trend-signals.com/Analysis/090520.htm


VIX/VXN are trading at IT supports.

Noted on the post.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38004994

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Quadruple witching happens on the third Friday of every quarter and is the simultaneous expiring of stock index futures, stock index options, stock futures, and stock options.

This is the 26th such quadruple witching to happen since single stock futures were launched back in December 2002.

Volatility

The effects of bail out with massive debt spending ~ Volatility eruption

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38718817

Posted by: *~1Best~*	Date: Thursday, May 21, 2009 11:49:55 AM

VIX/VXN bounce/reversal from the IT supports.

___________________________


VIX /VXN Low volatility readings to VIX 26.57 / VXN 27.87

http://trend-signals.com/Analysis/090520.htm
VIX/VXN are trading at IT supports.
Noted on the post.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38004994

Market Analysis & Forecast

Bearish Churning Markets at PivotsMarkets are continuing to trade above intraday support area even though we are seeing some technical violation of uptrend lines.

*VIX/VXN have risen to 32.63 and 31.87, respectively, as noted that the volatility was trading at intermediate support.

*VIX/VXN have risen to 32.63 and 31.87, respectively, as noted that the volatility was trading at intermediate support. I commented on the VIX/VXN relative to market actions since 2004, and now, Volatility is of course orchestrated to in sync with market actions to manipulate market directions. This is easy to do when you have entire money printing machine to gear market actions.

* SPX 880 and DOW 8200/8000 pivots.

* Markets are trading near at major resistances: SPX 930 +/-, DOW 8600 +/-, Nasdaq 1770 +/-, NYA 6000 +/-

* Futures are trading at the lower end of 3 weeks trading range -- targeting SPX 820 as next pivot with a break.

Selling Pressure in high trading volumes

Issues NYSE Nasdaq
at mid day

Advancing 204 427
Declining 2,614 2,156
Unchanged 75 85
Total 2,893 2,668

Ratio Advancers
to Decliners 0.08 0.2

$COMPX 1615.95 -57.12 -3.41% 1,617,675
$INDU 7899.63 -231.70 -2.85% 603,330
$INX 840.68 -28.92 -3.33%

VIX-VXN

Market Correction after trading to the target SPX 864.31 (850 +/-)

Markets rallied 30% from SPX 666, then, traded to resistances: SPX 864.31, DOW 8113, and Nasdaq 1660.
As noted on previous post since SPX trading near to targeted SPX 850, I alerted breadth and institutional distribution even though price actions have shown strength. Markets are venerable just same as we have seen wild sentiment swing in a couple of weeks from extreme negative sentiment to quite bullish sentiment.

While there is no mathematical formula to gauge reasons for the sudden sentiment swing, what is reasonable is to be reasonable with expectations. As noted on the American spending habit and the current economic condition, it is unreasonable to expect markets rally as if we are in a new bull market while we are continuing to see job cuts and yet to see commercial loan fall out.

Financial markets lead economy for the most of circumstances; however, our economy is unprecedently and uniquely facing global economy challenge. Americans supported the world economy during the past few decades, and now as a result, millions of Americans are in financial crisis. Therefore, it is prudent to adjust our expectation from the markets regardless how much markets sold off prior to the SPX 666 bottom. Oversold condition should be considered in the context of economic condition and expectation, that is, realistic fundamental assessment and forecasts.

The bearish market action scenario is still possible as markets have not traded above the pivot resistances, which I noted as SPX 850 +/- ( i.e. SPX 864.31 which was the high on 4/13/2009).

Pivotal S/R
SPX 800/770 and DOW 7700/7500

While markets do not show technical damage from the recent uptrend of 30% rally, markets are trading at pivotal cycle turn.

Even though VIX/VXN is broken to downside, price volatility is high which could induce more volatility after remaining relatively low VIX reading.

http://trend-signals.blogspot.com/2009/04/prosperity-based-on-illusive-economic.html

Market hype continues and VIX/CPC

Markets are using "VIX" to bait many as it has been already nearly one month since I alerted the VIX showing positive divergence and forming triangle. We now have entire traders in universe is talking about "VIX" while market makers are using it to bait many.

VIX closed at 38.85 at the lower triangle trendline support with a sign of breaking to downside.

CPC closed at 0.85 after trading to upper resistance near 0.90 where its 10-day moving average is showing support and resistance levels during the past two years as shown on the $CPC daily chart.

Combining the reading of VIX and CPC, markets are showing very low volatility which is usually taken as a sign of favorable market condition. That is not surprising as the Fed and the Gov have intervened during March to calm the global financial crisis. Again, to reiterate, the purpose of crisis is to profit by the world power, hence, the crisis management is a part of the big plan -- profiting trillions by bankrupting a few big banks such as Lehman, FNM, FRE, Bear Stern, etc.

At this point, it is obvious that markets are luring in sideline cash to bubble up again after draining over-supplied cash in the global financial system during 2002-2007 making bubbles in real estate using Yen Carry-trades. After crushing many small funds and investors and globally slashing jobs, so far, global markets are showing signs of initial stages of making another bubble to lure in sideline cash initiating pop-and-drop market manipulation.

Even though markets could break above the SPX 850 resistance, I would not recommend to enter markets at this time as markets can quickly sell off changing the market sentiment as fast as it has changed just in a couple of weeks.

This market turn is not like the bottoms which we have seen during 1970s, 1980s, or 2000s because millions of Americans are wiped out after spending too much during the past decades.

Regrettably, millions are duped by the global grand scheme and now millions are fallen into financial disaster. Especially, millions of Americans spent life-savings over decades supporting the global economic boom; but, many Americans can't spend as we did during the last decades. Therefore, don't be fooled thinking that we are at the bottom levels like in 1970s, 1980s, or 2000s as during the last several decades, Americans had savings and wealthy. Of course, we still have many who made good financial decision securing cash and real estates during the recent melt-down; so, markets are now luring in those who survived. I am being too skeptical, but it is the reality as I don't see genuine economic and wealth growth anytime soon when we are still in the middle of economic downturn and globalism which will further drag American economy and wealth. At least, we know the facts, not deceived as many are now aware of the reality.

SPX 850

SPX 834.38 ~ Reached target 850+/- R and with the Bernanke, G20, FASB, and OB Madoff printing scheme, markets will pump and dump at will drive the world financial markets like their little cash registers. With the big Bernanke/G20 money Madoff scheme, markets will blow off up or down. Markets are snoozing with low VIX. Big Madoff show in March -- will it continue to April?

I recommend to take profit and sell. A pull back is due.
http://www.youtube.com/watch?v=uehqZlkUb3g

Markets retrieved from the resistances.
$COMPX 1625 +/-
$INDU 8075 +/-
$INX 850 +/-

Snoozing VIX/VXN

VIX closed at 42.04 in the diamond/triangle formation.

The volatility is remaining in the triangle formation for several weeks now.

VIX/VXN snoozing

Market Volatility like this heading to financial massacre.

Joblessness Hits New High, But New Claims Drop
| 19 Mar 2009 | 08:36 AM ET

The number of U.S. workers drawing state unemployment benefits scaled another record high early this month, government data showed on Thursday, highlighting the difficulties of getting new jobs as the economy battles a severe recession.

However, the number of people filing new claims for jobless benefits fell to a seasonally adjusted 646,000 in the week ended March 14, the Labor Department said, still at levels consistent with a distressed labor market. The prior week's number was revised up to 658,000 from 654,000.

Analysts polled by Reuters had forecast 652,000 new claims.

The number of people staying on the benefits roll after drawing an initial week of aid surged 185,000 to 5.47 million in the week ended March 7, the latest week for which the data is available, from 5.29 million the previous week.

This was the highest on record and pushed the insured unemployment rate to 4.1 percent from 3.9 percent the week before, the highest since June 1983.

The four-week moving average for new claims, considered to be a better gauge of underlying trends as it irons out week-to-week volatility, rose to 654,750, the highest since October 1982, from 651,000 in the week ended March 7.

The Labor Department will next week publish revisions for the series from 2004 to 2008 for both initial and continued claims.
© 2009 CNBC.com

URL: http://www.cnbc.com/id/29771632/

Financial market volatility massacre

Trade and Budget Deficit issues: US is Already 'Bankrupt'

Technically, the U.S. is already "bankrupt" because it has a debt that is almost four times the size of its economy, says Puru Saxena, CEO of Puru Saxena Wealth Management. He tells CNBC that the U.S. is at risk of hyperinflation.

http://www.cnbc.com/id/29769858

Too far, too fast Volatity SPX 800 20% up since 3/6/2009

Markets have traded to the first targets: SPX 800, Qs 30, Nasdaq 1500, DOW 7500 with high volatility because we do not have genuine economic reasons for markets to trade up. Because of the speed of market price manipulation, it is completely insanity to be fooled into too many times before the 1Q earning report. Financial market is not what it used to be. Don't take Volatility Drug.




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Markets are trading at pivotal resistances: Intraday HOD so far SPX 731.92, SPY 73.75, Qs 27.99 -- consolidating near at R1 which was the case yesterday. A follow-through day with the rally yesterday would provide some positive sentiment as markets are oversold and now daily/weekly indicators are showing a sign of price improvement with internal positive divergences -- targets to RST formation wave upside, Qs 34 +/- and SPX 850 +/- -- with the impulse wave, so far, in progress.

Friday, March 06, 2009 5:10:03 PM
MARKET BOTTOM: SPX 683.38 0.83 0.12%
SPX 666.79

Volatility: Financial nuclear bombs up or down

Markets are trading like in drugs with very high price volatility.
Don't be fooled into this market.


VIX closed at RST lower support trendline @ 40.06

We have a lot of economic uncertainty, and the market is showing high volatility. It is not a good idea to gamble your investment money yet. This is traders market.

VIX down market with very high price volatility

Markets are due for a pull back. No bulls here, but rabbit with carrots. The macd on 60 min charts compared to the price sticks are looking like on viagra.

The negative divergences are very odd looking.





Extreme Price Manipulation: VIX is down today. Market volatility does not show on VIX.

Very low trading volumes -- not many wants to buy overbought markets, waiting to work off the OB condition, especially going into the Fed announcement tomorrow. Markets show higher sell-volume yesterday.

This market can sell off faster as it went up parabolic.

Too far, too fast unstable markets

Talking about "Demand Shock Rally"... it is really SHOCK! Markets have reached resistances at HOD: Qs 29, SPX 775, DOW 7400, and Nasdaq 1445.

When markets show such volatility, it is shock and awe making you wonder how fast markets will come down. Markets are up and so does VIX.

Volatility - VIX warning RST +D

VIX is showing positive divergences with a RST formation going into the Quad OE week. Volatility is showing +D going into the Quadruple OE week and it closed at 42.36 above 40 support going into the March Quad OE week.

VIX is showing positive divergences going into the Quad OE week. With the Mark to Market review by AICPA, markets will rally during the OE week? It seems that markets either GO-UP or GO-DOWN in volatility.

Intraday is very overbought with any retracement. Faster market goes up, faster it will come down. If market technicals reading normal, it will be safter; otherwise, market actions are complete gambles.