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VIX Explodes As Attempts To Fix Broken Market Fail
The market is now irreparably broken - if you are trading your own money today, or in the near-future you will lose it, and you can thank the SEC, the NYSE, dark pools, Goldman and all the other "liquidity providers" and market makers. The damage control by the mainstream media has failed. The European bailout has failed. The Nonfarm number was a failure, despite Obama's attempt to spin it favorably. The entire bear market rally is finally being seen for the sham scam we have said it was from the very algo-manipulated beginning. So is it any surprise that the VIX is now double where it was a few days ago. All those who sold calls on the VIX are getting carried away in bodybags, the only question is whether the decimation there is worse than among the ranks of the carry traders. At this rate the market is likely going to close near the stop limit positions in the 1,050 range, which will push traders over the weekend to take weapons grade doses of Xanax. Alternatively, mutual and pension fund idiot money will simply sell.
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I use VIX vapor rub on my bulls.
NICE!
Finally VXX gamblers will be vindicated!
fap fap fap fap fap fap fap
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And just like that from -270 to positive in a few minutes. Let's all applaud Ben's PPT performance today.
BAM! 1113 to 1128 in 2 mins :) love those algos
Okay guys and girls, I am tired of trying to log onto this site, (during time of crisis), only to find yet again that the servers are overloaded.
I am putting out an official challange to all readers of the site. Get off your lazy ass and hit the donate button and make a donation toward the purchase of a new server and better tech connection!
I would greatly appreciate if the regulars on this site would mirror my calls for donations so we can get this fixed.
I think it would help if they just gave us an idea of how much they need/want to get the new servers. I know we should all just give. However, I think it would help many to contribute if we just had a goal to shoot for here. Then, just show a goal total until we get there (probably pretty quick).
Or just Ron Paul money bomb it style and do a 24 hour thing.
i tried to donate and when I tried to "check out" with my "cart" the server dropped my connection.
You asked earlier today for a Timmy in Jail poster and you got it! CD was promoting my ZH fundraiser store and that was one of the images I created.
So the poster is up! It took many hours to perfect. You said you were good for a dozen. One would be great. It's all to support ZH.
http://www.zazzle.com/timmy_in_jail_poster-228189632579265027
Howard
www.zazzle.com/Howard_Beale
Donated last night. If things really are about to unwind and yesterday's strain on the site is any premonition of things to come, ZH will need some new equip ASAP.
Donated $50 three months ago.
Donated $100 a couple of months back. well worth it.
Does this mean that the crunchy outer shell of the hollowed out inside that is this market is finally starting to implode? If so I've been waiting for this for far too many weeks.
This is insane, a complete joke, I wouldn't put a wooden penny into this market.
The SEC are happy with their porn and KY jelly doing the thing they do best and what the banks pay them to do.
s&p drifing back down, but now im scared to go into the water... gonna need a bigger boat methinks
Water's fine, if you don't mind a little spilled crude and a few floaters.
"The mass of men lead lives of quiet desperation. What is called resignation is confirmed desperation...."
Since Henry David Thoreau's time, desperation has grown a lot noisier.
Reminds me of that pilot fighting with the computers in the new jet airliner, constantly going into near stall.
why bother with efficient capital distribution when you can make your bonuses stophunting retail idiots. you are the parasites, banksters, not retail, and you just killed the host.
I cannot believe I am saying this but the markets need to be closed for a week and recent activity investigated in order to discover where this fraud is derived from and who is profiting while the transactions are minimal.
You have had some eloquent posts lately, but this is a bad idea. We know where the fraud is. It's on the banksters' balance sheets and resides inside the FRB. It's Benron. closing the markets would only give these bastards the cover they so desperately want. If you are long this market or you have loved ones who are long this market, GET OUT NOW. Don't play in this rigged CASINO.
Would you advise that for shares of PM miners? I'm getting nervous about mine. (NPI)
I know you didn't ask me, but here's how I look at it. When I bet on gold, I'm betting on the paper fraud collapsing. In that case...why would I want paper?
I realize that people buy miners, futures, ETFs, etc for leverage that they can't get holding physical. That's fine, if you can time when this thing is going to implode and ride the roller coaster to the last moment. But I'm no expert trader and the fundamental incongruity between those instruments and what they represent would cost me sleep.
Also - if you can't stand up and explain to me (or whoever) why you're in something, forcefully (waving your finger at me and spraying spittle into my face)...then why be in it?
Just my $.02, not investment advice, etc. I should probably listen to it myself, given that what I'M nervous about these days is my dollar exposure...
I'm with drwells; I'm out completely, including all PM stocks.
Physical all the way. Sleep like a baby.
You have seen how fast the big moves happen; you think you can time it right, and convert your profits into physical too?
I'm with drwells and nuinut.
Start buying gold right away. Physical only.
Think of it as insurance in case the markets malfunction, oh wait....
Would be simpler to find where there is no fraud.
+1000
What I do not understand is how in times of uncertainty as to whether or not the trades were intentional or not you just decide to cancel the trades, just in case. A lot of people who made the right play going to the short side just got fucked. Is this for real?
With everything so obviously going to hell th VIX was a screaming buy when it was well below 20. Options on the VIX that is or options on the S&P. The ETF is a joke.
Worst manipulated crap I ever seen in the history of the DOW that I have lived to watch. It is very clear that the whole market is nothing but computers trading back and forth a set of numbers. There is obviously no regulation at all and GS-JPM are allowed to do whatever they want when they want. I think its time the FBI steps in and starts bringing down criminal fraud charges. How do you know you even own a stock now when you buy it? The DTCC can't even keep track anymore. All you own is a symbol and some numbers that they make up as they go. Just amazing the corruption in this country that goes without punishment. Yet, let someone rally and speak out about it, and they get tazed to death.
Agreed, I've wondered for some time whether there's even any actual trading going on, or if the computers just spit out a stream of numbers using an algorithm by Benoit Mandelbrot to look realistic, with the Big Boyz having some red override buttons labeled "300+ point boner", "smash gold", "giant short squeeze", "wipe out stops", etc.
LOL. I would not be surprised if one day such a room was discovered at the fed, full of trading screens and a panel of oversized red buttons and a gavel to hit them with!
Dow down -135 again. SPX -16.
The rollar coaster begins again, unless the ECB presses the nuclear option, which i think they will anyday now.
I'm so tired of being whipsawed ... this is just ridiculous. There is NO type of analysis that explains this action. Its just a clusterfuck.
Great reporting on this shit.
all of this HFT bs has made me feel sicker and more disgusted than I imagine Rosie O'Donnell's kids will feel when they find out where their other mother puts her mouth at night.
a big shout out to zerohedge today on when genius prevailed
http://whengeniusprevailed.blogspot.com/2010/05/5710-midday-report-marke...
What about those of us who bought calls on the Vix when it was at 18? You know, back in March.
Sold a little early today, but I'll live.
How was the nonfarm number a "failure" as you put it? Unequivocally a good number...but i guess that doesn't suit the "doom and gloom" of this website.
As for all these comment...You people are like panic merchants...you spin the same unobjective arguements every day!!
How is it a disaster that the S&P is 1110? Hardly a level where people should be panicking (or getting excited as the case may be). Be rational and objective!! And please don't flag as junk just because it doesn't agree with your views.
Hm, I think people are flagging as junk not because they disagree, but because it's actually junk.
It's pretty obvious from Thursday's action that the markets are in a bad way and dangerous for people to have their money in, regardless if you think S&P 1110 is a non-panic-worthy level. If you don't care to see that, well good luck to you. I would suggest you're the one not being objective.
If you look carefully, the nonfarm number is a failure because it is mostly BS. The Census workers are not part of real employment increases, nor is the Birth-Death model. Add to that the fact that employment must increase a certain amount every month just to keep up with population growth, and it turns out we're (still) losing jobs as a percentage of workforce, not gaining.
Not to mention the fact that the official unemployment number went up, to 9.9%.
And, keep in mind that these are government-produced numbers, which, it has been shown time and again, are usually fudged to favor the government's agenda. So you can bet the actual nonfarm number is lower, and actual unemployment is higher.
"Unequivocally a good number" ...I don't think so. Not even equivocally. It's no kind of good number, unless you're trying to sell something to someone desperate enough to buy.
I would suggest perusing shadowstats.com, since it appears you may be unfamiliar with the notion of government duplicity.
(Probably nobody will see this comment, so late after the original post, but venting makes me feel better.)
Vent all you like. I am in fact quite familiar with the statistical construct.
As for Thursdays price action - if you are involved in the market you will know that liquidity (as esoteric a thing it is) was poor on the way up to the highs so why expect it to be any better on the way down?We've all heard the reasons people are offering for the 700 point drop, but it did bounced 600 just as fast. I'd be properly worried if it stayed down there after that drop.
But thats not really my point. I couldn't care less whether or not stocks are cheap, expensive or otherwise - i don't like to trade rigged markets (which these days is pretty much all of them). My point is that every single post on this site is of people panicing running to buy a gun, butter, tin hat etc. And you have all been screaming that from when spoos were at 666. Just too emotional this blog. Still, its better than watching cnbc! Ha.
Well, have equities been saved by the weekend? No. The word is out, take your profits. So the sell will be doled out over next week to keep enough buyers in play. As long as the facade is bruised in some way, it just so happends to be from external influences, speculation will no longer drive price. The lie is seen for what it is.
But, the disaster is baked in, and not about Greece. Our problems are our own, and the mechanisms in how they may represent themselves in the price of traded equities, is of the FEDs and Administration's making. The hope was that the liquidity and stimulus would become self sustaining, but they ignored the signs of the "recovery", and tried to hide and delay the impact of their mistakes.
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So what happens when we take away the FED as a buyer in real estate MBS? Prices fall.
Really what was the thought process here? Simple it was to buy the bad debts of the banks. There is no other logical conclusion. For to dominate a market as a buyer, at some point you will need to exit. Why would you do this when you know prices still need to correct? The point is you can never exit without disrupting the market. With the risk being, if the assets are over valued, you will just lose money on the MBS you just bought.
This is not low risk and never would be. The FED, constitutionally, could not defend their MBS position if the losses were revealed.
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The real damage is to play their last big card on MBS. It should have been funelled to prop up the states. Through another stimulus or whatever program. To bottle up $1.35T when it could go to the states, is very poor judgement with the pressure now on sovereign debt.
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The gamble was to save the banks and try to turn the price on real estate while buying bad debt. If real estate now starts to correct again towards real mean wages. The FED will have created a deflation scenario most of its own economists feared the most. These bad debts should have been allowed to clear through market forces, but would have bankrupted the big banks.
The system is just as broken as it was before, except for the fact that the FED will not be in a position to grow its balance sheet. So FED action is essentually made mute except for buying Treasuries through QE on behest of the administration.
Mark Beck
What is new here or any other posting on this topic.
EVERYONE knows
a. The market is run by criminals who will always come out winners. You can call them Banksters if you want... they probably like that.
b. The same market is going to crash again, whether it actually happens in nominal terms is still hotly debated.
c. One can make good money for the time being as well.
What is interesting to me is the geopolitical angle. Everyone, every nation from the US, to Europe to Africa, Russia, and yes, even China is playing, or being played in a desperate game.
The plunge yesterday was a hacker attack meant to hurt confidence in the system.
I am no fan of the banksters as they are called, but the time is very soon coming when we will all see and feel the consequences of this game. As for me, I want my country to win, as I have children, and losing this game as sick as it is will mean a very bad life for them.
No major event, be it an earthquake, hurricane, stock plunge, bombing is as it seems. Paranoid... yep, it is not fun but these times call for it.
Crash fiat system! Crash! There's a chance that something better will reeemerge. If we keep going like this, there is no chance for any of our children.
I hear you up there imap.
I have a kid just starting her career. And we now have what seems to be a criminal overclass stealing everything they can.
All over the world.
Posted May 1st - a week before the crash.
'11,250 / 300 is an area of significant resistance and if this level can’t be breached it should signal the end of the March 2009 bear market rally - the weekly DOW chart shows an expanding wedge indicating a significant move is probable - this remains an overbought bear market rally and the uptrend could falter at any time - the VIX index continues to give bullish warnings which is bearish for equities - long term charts of key equity indexes continue to give bearish warnings and the March 2009 lows will be breached in my opinion - USD Index bullish warnings since 2009 on the weekly and monthly chart have not changed and further USD strength and thus EURO weakness is still expected '
http://www.zerohedge.com/forum/latest-market-outlook-0
http://stockmarket618.wordpress.com