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This Is A Fair And Efficient Market

Submitted by Tyler Durden on 07/15/2009 13:27 -0400

In some parallel universe far, far away this makes all the sense in the world. Probably in the same one where stocks are cheap. And if it is not obvious, the chart overlays the SPY and the VIX. The only way the VIX will retrace back to indicate the current broken market levels, is when the S&P hits 1,000... sometime in the next hour.

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Wed, 07/15/2009 - 13:42 | 7329 Anal_yst

The image says "hit <help> for explanation but its NOT WORKING!

</JK>

Wed, 07/15/2009 - 13:56 | 7333 Undertaker (not verified)

Don't Bogart That Joint!

http://tinyurl.com/ngfdhl

Wed, 07/15/2009 - 14:00 | 7334 curbyourrisk

Tyler...question...

Can the use of ETF's as hedging instruments, reduce the the effectiveness of the VIX as a measure of risk???

Wed, 07/15/2009 - 14:01 | 7337 Ajas

VIX and SPY usually track inversely... but for some bizzare reason VIX (think of as implied volatility on one month ATM put/call option) going higher as the market rockets higher. Very uncommon.

Wed, 07/15/2009 - 14:06 | 7339 Anonymous

As we came into the county fair we noticed on our right a carnival barker . Step right up everyone wins a prize. To our left we saw a clown jumping up and down saying now is the time let the good times roll. As we entered the midway bubbles were floating all around us. Everyone was so excited and did not seem to realize the bubbles were bursting all around them. Deja vu this all seems so familiar.

Wed, 07/15/2009 - 14:07 | 7341 Hondo

The HFT's are ringing the register today. I'm kinda feeling sorry for the blouts buying what they're selling. Oh well, that's are part of the "green shoot" experience. Happy Trails.

Wed, 07/15/2009 - 14:08 | 7342 Gilgamesh

VXX has been acting "properly" all day - inverse to SPY (I jest with that term, but why fight it anymore). Something has been up with VIX since making a lower low early this morning.

Wed, 07/15/2009 - 14:13 | 7343 Anonymous

Let's not overreact to half of one intraday move. Longer charts still show a fairly strong inverse correlation.

Wed, 07/15/2009 - 22:11 | 7628 FischerBlack

Well, yeah, but rare artifacts are interesting when you find them because they're rare. When unusual things happen, it's customary to point them out for observation. You don't learn from stuff you see every day.

Wed, 07/15/2009 - 14:35 | 7356 phaesed

No, Tyler is right.. the SPY will hit 1k and then sell off like hell, this is a suckers rally to fool the last of the suckers. Boy, those math problems are getting harder, bound to be some RIA's who fail it.

Wed, 07/15/2009 - 14:40 | 7358 Anonymous

Market is not supposed to be fair. However it should have fair rules for all of the players, so it could be as efficient as possible. Unfortunately some regulators are sleeping on the job giving the opportunity for "special" players to bend the rules and make the market as inefficient as possible.
And when market is inefficient is spells trouble, RE prices always go up and similar phenomena.

Wed, 07/15/2009 - 14:44 | 7363 maximus

Bears be patience.

Whatever comes out of these gates, we've got a better chance of survival if we work together. Do you understand? If we stay together we survive...

Thu, 07/16/2009 - 06:19 | 7727 Anonymous

Folks, The MANIPULATORS PUMPING this market higher, are setting up the CHUMP/BAGHOLDERS. The VIX is participating the DUMP soon to come.

Wed, 11/10/2010 - 06:29 | 715662 cheap uggs for sale

This Is A Fair And Efficient Market

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