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Second Biggest Weekly VIX Drop In History
With the VIX closing the day and the week at approximately a 17.70 level, it marks a 40% decline from its closing print recorded on March 16, when it hit 29.4, just as the Nikkei was about to flash crash to the high 7,000 range. This represents the 2nd largest closing drop in the history of the volatility index, beaten only by the weekly VIX drop from November 4, 2008 (when the VIX dropped from 80 to 47.7). And stunningly, on an intraday basis, when the VIX dropped to the day's lows of just over 17, it briefly represented the biggest weekly drop in the VIX ever. Of course back in 2008 each and every day it seemed as if the world was ending and both stocks and vols moved around like electrons shuffled around in the LHC. This time around, with the apocalypse yet to be delayed (we will not list all the news that have hit the tape in the past month), one wonders: is the market so habituated by the Siren song of the Bernanke Put that it believes nothing can ever dent the smooth Russell 2000 upward slope ever again? And what happens when the Central Planner hubris is once again exposed as the hollow perpetuation of an economic fallacy backed simply by trillions of pieces of linen-diluted cotton? We shall find out soon enough.
Data courtesy of John Poehling, jr
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What volatility? :p
What market? :-I
What isle? :0
wat?
Might this be related to the earlier post on those huge institutional long positions on the S&P? It seems that for some reason people are going all in on the S&P and are buying fewer puts.
what Fed/PPT interjections? ....the volume is missing, we're running on empty!
My bet is that itll shoot straight up.
I've learned that:
vix <= 15 = STFT
vix >= 20 = BTFD
I never imagined I would have one of my worse weeks with an average price of 21.87 on this April VIX Futures position
Oh good. I'm just going to sell my silver then.
This is like the sea going out right before the Tsunami comes a crashing in.
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volatility is draining out of the market through the large vertical crack in the reality vessel.
Good one!
+1
ORI
"Is the market so habituated by the Siren song of the Bernanke Put that it believes nothing can ever dent the smooth Russell 2000?
Short answer: YES!!!! It doesn't matter if the companies in the index are more valuable or the dollar is less valuable..just BTFD...oh and the VIX can stay low, as the volatility of the declining value of the companies in the S&P vs the declining value of the dollar will be minimal...one wishes there was a golden VIX which measured the equities vol vs gold...that would be worthwile to own, buy calls, etc.
Wer all know what happened after the big drop, eh!
I don't care; actually I covered shorts and went long in earlier of this week.
Did you buy Jap nuke dip?
After the fact trading claims are not allowed. If want an ego boost....post your trade before you know the outcome.
Oh yea, I went short the VIX this week....I'll tell you next friday what i'm doing monday.
you hear that?...it's the faint sound of a stampede in the distance.
Who the fuck would go long into the weekend with Syria, Yemen, oh all of MENA falling apart, plus portugal plus Canada and the nuke crisis is Japan getting worse.
Consumer confidence down? Nobody cares. Gas prices surge eh.
Who the fuck would not? if anything has a downtick on any of those old stories or any new piece of news over the weekend...well the Bernankank any other central bank involved would shower us with money to ensure that we stay long and calm.
No money showers for us... Only for rich bankers and their in crowd.
What do you mean? You haven't got the FEDwire TAP installed at home????? ohhh maaan you have missed the benefits of QE bit time
Yep. Everyone wants to be the last man standing. Oh wait, last man standing gets shit. First man out gets paid. The rest get trampled. I DO love a good complacent market, especially being out for the most part. It's quite a show.
There was some volatility? When?
The great risk is there is no any preceived risk.
When BTFD stops working and a month later everyone realises it has stopped working, it will be a thing of beauty.
I can't wait to watch CNBC that day.
Coming soon : Due to unforseen technical issues, intraday and closing prices for the Dow and S&P will no longer be available from their respective markets. In order to continue providing the public with this invaluable information, henceforth Fed Chairman Ben Bernanke will issue a press release following the close of business each day with market closing numbers.
These markets will never be allowed to drop. Period
Thats ridiculous. No, there will be a market drop, when they need fear and panic, their most reliable tool.
I use all my custom spread sheets to track Mat prices on the AH these days. Real activity there. Mageweave cloth is throught the roof this week.
That has to be world of warcraft or something.
Reported
Why is it surprising that VIX has dropped, since it is made up in large part from petrochemicals??? My mother used to put it on me when I was little every time I got a cold, and I used to hate to go to school smelling like VIX. I bet that VIX would go back up if it just didn't smell so bad and hurt your nose. People just don't pay enough attention to their noses sometimes, which is probably why it got that high in the first place, but you know, sometimes you just have to go with your nose, which seems to have happened here. People just got tired of the bad smell.
Squeeky Fromm, Girl Reporter
So you're saying inflation is hitting the cost of blow?
It isn't just for runny noses. It helps numb the bum when the bernanke bends you over.
Now, that is WAY more than we need to know.
But it burns! Oh, how it burns.
Who's buying vol anyway? It can't be all retail volume can it?
I can't believe I'm the first one to say it - BTF(VIX)D
http://www.princeton.edu/ceps/workingpapers/91malkiel.pdf
But news is by definition unpredictable and, thus, resulting price changes must be unpredictable and random. As a result, prices fully reflect all known information, and even uninformed investors buying a diversified portfolio at the tableau of prices given by the market will obtain a rate of return as generous as that achieved by the experts. BTFD is easier to type than greed and fear or to appeal before the bell curve pricks came along first published in 1973, a blindfolded chimpanzee throwing darts at the Wall Street Journal could select a portfolio that would do as well as the experts.
http://www.apeakunderthehood.blogspot.com/
Is Bernanke Going to Announce a Fragrance Line?
Contradictions do not exist. Whenever you think you are facing a contradiction, check your premises. You will find that one of them is wrong.
- Ayn Rand
Words to live by. Unfortunately, Ayn Rand did not learn anything about Quantum Mechanics, which is chock-full of paradoxes!
I told myself :this week is not the time to go short!! I cannot say it enough, do not go short!!
shit ,I did -on SDS- all in on friday..why am I happy??
Vix is of the CBOE and they be as crooked as the rest of the wall street, but they are in chitown.
It is more a useful indication that options are fearing some action or event and that market makers can collect more premium, fast and furious. Then when it settles down, the makers watch with glee to how many bagholders they created. Ching, ching, bada bing....
Best comment.
Rally fucking on! (and hedge accordingly)
CONGRATULATIONS....YOU WON.
CONGRATULATIONS....YOU WON
CONGRATULATIONS....YOU WON
CONGRATULATIONS....YOU WON
CONGRATULATIONS....YOU WON
CONGRATULATIONS....YOU WON
ANNOYING ISN'T IT!!! SO IS THIS FUCKING MARKET AND YOUR LAMEASS COMMENTS!@!!!
It seems like you're bottling things up.. come on, let it all out.
Edward G Griffin on Glenn Beck now talking about the origins of the Fed.
Whatever one may think of Beck, at least he's trying to educate the sheeple. More then any
other talking head is doing!
Ratigan?
Ratigan is great and has done a terrific job discussing the political manipulations behind the scenes by bankers especially during finreg but at the end of the day he is still on a GE owned network and I believe his content has to be restrained.
Also the moment he had Cenk Uygur on his show daily with his socialist ramblings I could not watch as often.
You would think you would be happy that Beck is attacking the Fed? Unless, you are
for the Fed and BB.
Exactly. Were not stupid here and it would not take long to discover how captured he is but in the interim we have a net positive.
I don't have time for his programs anymore, but your 100%, even at my age I learned more American Early history, and Progressivism BS, the Who's, what's, when ,and where's.
I was already awake, well awake, but he and his mainstream guest's on the topics, were enlightening to say the least.
Every American kid (esp ethnic minority),Blacks esp should have caught the programs.
When your told all your leaders are Crackers, and Black men did not play a huge part in the founding, and in the War of Independence.
Everyone has see the classic picture of Washington crossing the Delaware, with the black man in the picture, history would (did/does) have most believe he was a slave along for serving.
Not so, he was the first to die in the fight that ensued,next to the rest of Washington's men,rifle in hand for HIS America to come.
Most still believe the Pledge that says we have a Right to the pursuit of Happiness, not correct.
It originally read PROPERTY.
Never knew that. Thanks and if you are not learning something new everyday it is tragic.
P.S.- Was this a draft you are discussing in regards to happiness/property?
Mormon shill, Beck, spews forth his derelict nonsense.....
Whatever he is there are discussion of the evils of the Federal Reserve on mainstream media with Edward G. Griffin. If it compels a few people to read a book and comes to their own conclusion of how the taxpayers are being used as parasites for the banking cartel and we are losing our freedoms because of it then it is a positive.
That piece may be a positive, but he's just doing it because it's vogue and riles people up. Like he's taking the lead on the fight, but I doubt he and his writers are all that knowledgeable about it. It seems up there with Palin telling me about energy policy. Only goes so deep. I get it though, would like to see a big bump in "Creature" book purchases.
Wow, how did that happen?
Is someone losing control of the controlled dissent?
Or is it time to let the cat out of the bag, and rub our faces in it, since it is far too late to avoid its endgame?
This is OT but very important !!!!!!!
Someone has taken off all the live geiger counter streams and or comments from the Ustream websites.
I copied readings from the RADNET site below, and just so you know many of the monitoring stations in California are down "because of mechanical reasons" ?????????????????
Fixed Monitor Location: KS: WICHITA
Measurement Start Date/Time: 03/25/2011 07:06:40 PM
Measurement End Date/Time: 03/25/2011 08:06:48 PM
Beta Gross Count Rate (CPM): 358
Gamma Energy Range 2 Gross(CPM): 1882
Gamma Energy Range 3 Gross(CPM): 1130
Gamma Energy Range 4 Gross(CPM): 333
Gamma Energy Range 5 Gross(CPM): 179
Gamma Energy Range 6 Gross(CPM): 109
Gamma Energy Range 7 Gross(CPM): 137
Gamma Energy Range 8 Gross(CPM): 95
Gamma Energy Range 9 Gross(CPM): 33
Gamma Energy Range 10 Gross(CPM): 51
Fixed Monitor Location: NE: KEARNEY
Measurement Start Date/Time: 03/25/2011 06:33:46 PM
Measurement End Date/Time: 03/25/2011 07:33:55 PM
Beta Gross Count Rate (CPM): 102
Gamma Energy Range 2 Gross(CPM): 2523
Gamma Energy Range 3 Gross(CPM): 1540
Gamma Energy Range 4 Gross(CPM): 431
Gamma Energy Range 5 Gross(CPM): 238
Gamma Energy Range 6 Gross(CPM): 146
Gamma Energy Range 7 Gross(CPM): 175
Gamma Energy Range 8 Gross(CPM): 106
Gamma Energy Range 9 Gross(CPM): 34
Gamma Energy Range 10 Gross(CPM): 42
Fixed Monitor Location: SD: RAPID CITY
Measurement Start Date/Time: 03/25/2011 02:44:59 PM
Measurement End Date/Time: 03/25/2011 03:45:07 PM
Beta Gross Count Rate (CPM): 103
Gamma Energy Range 2 Gross(CPM): 2348
Gamma Energy Range 3 Gross(CPM): 1385
Gamma Energy Range 4 Gross(CPM): 398
Gamma Energy Range 5 Gross(CPM): 185
Gamma Energy Range 6 Gross(CPM): 116
Gamma Energy Range 7 Gross(CPM): 144
Gamma Energy Range 8 Gross(CPM): 69
Gamma Energy Range 9 Gross(CPM): 28
Gamma Energy Range 10 Gross(CPM): 34
I'm in the midwest. I have no reference point for those measurments. Are they bad?
Widowmaker. I should have stuck to buying shiny pieces of metal and hiding them in my closet. FML.
The reason it collapsed so fast is because virtually every hedge fund on the planet bought VXX in order to "make a killing" on the next market drop.
Well, that didn't work out so well....
Seems like every market correction is viewed as an opportunity to go short big and make huge coin gaming another 2008 market crash.
Nobody, I mean, nobody, is going to miss out on catching the next bear market drop.
Seems like the Fed is in pretty good shape if the market tanks, since they're leveraged 50 to 1 going long bonds.
Everyone wants it, bigtime.
Your trading stuff is still the best by a mile.
...and it won't happen until everyone who is trying to play for it goes broke in the process...only then it will happen...
Risk on risk off = vix
Always has
5% drop a bear trap? This run into a bull trap? Me thinks so
Once EVERYONE believes in Bens put. Look out
Yep, there's not many refi's to be had, the smart money should be getting out soon, because when rates are raised, BSBernank is going to plug how it's helping Main Street by bringing food and oil down. Real man of the people. I'm hoarding cash because there's a big possibility that stocks and PMs are going to be driven down with no QE on the table. If banks can sit on RE then all is fine and put the ball (employment) in Congress' court.. @ least that's what I'm thinking now in a drunken stupor.
....and in so doing, the VIX confirms more QE is on the way....in case anyone had some doubts....not that anyone here would....
(we will not list all the news that have hit the tape in the past month) Oh please oh please! I've collected a ton and need more.
Just reminded of the scene from 'Defending your Life' with Albert Brooks, when he first arrives in heavenly city or whatever it was called and saw on the TV that it was 72 degrees and sunny- every day. The Bernank has errected his own heavenly city.
The Russell within spitting distance of the 2007 high. In realizing this, I promptly closed my TNA and FAS longs (XLF was moving smack into resistance, though this was a break-out day for IWM with a late retracement). This could be an iron ceiling for the Russell.
Everyone meaning the last 5% trading in stocks you betcha.
You would not believe the amount of wealth class buying PM's right now.
Enjoy your paper trading...and I mean that...
I've been watching the Dow, see how my hunch plays out. Seems today's goal was make damn sure to take out the 12214 & 12213 on March 8 & 9. Good job, boys. Look at a daily one-month. Next T=12258 (Mar. 3).
At first I was hoping there's a solid ceiling at 12200-12250-ish, but knowing these bastards.... "the sky's the limit!" We shall see. What say, Robo?
the market will keep going up as long as money is thrown into it, now ben, soon japan, etc. it is comical and the people doing it need to be removed from power and put in prison
There are still mid-day volume selling spikes occurring each day, as they have regularly for weeks now. Nothing too dramatic, but they are steady and consistent... somebody or something's getting out?
Gillian Tett in FT yesterday
http://www.ft.com/cms/s/0/6a84e9b4-5635-11e0-82aa-00144feab49a.html?ftcamp=rss#axzz1HibmNd7i
Machines have no emotions.