A Whole Lotta Something Going On

Tyler Durden's picture

Sigh... Volume is around 50% of average. USD ends the day unchanged; Treasury futures imply an unchanged cash market; Equity indices close practically unchanged but there are some odd-ones-out on the day. Utilities were sold much more heavily that the rest of the S&P sectors (with Tech the only other red sector). Copper managed an outlier gain while oil/gold/silver all dropped. Individual stocks suffered from some exchange drama but all eyes were on JCP (which potentially lost Mr. Ackman $106mm today and ended with a $17 handle (-13%) - its lowest since March 2009; AAPL slid from 'exciting' opening highs to close -0.75% finding every ramp to VWAP was sold into. VIX was the story of the day as much was made of the collapse in front-end risk premia - this (as we explained earlier) was only half the picture as the longer-dated VIX rose relatively as the fiscal-cliff event risk is gradually priced in at year-end. Stocks were considerably more volatile intraday than broad risk-assets (thanks to Treasuries closure) especially after Europe's close, but they ended the day pretty much recoupled.

The ETF Capital Structure (left) statyed relatively in sync after some early exuberance in stocks faded. Broad risk assets (green - right) statyed very quiet while stock meandered around with VWAP as an anchor...


S&P futures fell into the European close, ramped to run stops off the highs then drifted back to VWAP close very modestly green on the day... with 50% less than normal volume...


Commodities were mixed...especillay interesting given USD unch


JCP had a day...-13%


Utilities were the worst on the day by a long way - followed by Tech. Healthcare won as Indusrials slipped rapidly into the close...


10Y maybe rose 1bps (given where TSY futures traded) but 30Y was unch.


and here's VIX term structure... not so bullish eh?


which steepened the most (inverted on the chart) in 8 months in the last 3 days... back to its 100 and 200DMA...


and Options implied skewness is rising - as complaceny gradually falls from its record highs...


Charts: Bloomberg and Capital Context


Bonus Charts: It would appear the world and his mum have grabbed downside protection on AAPL... as we have ripped from record levels of implied complacency to almost record levels of concern... This chart plots the amount of expectation for a downside distrbution of returns priced into AAPL options prices. We would note that this doesn't mean going full bullish is required as we suspect that the funds that are massively over-exposed to this monster simply overlaid risk into year-end and are (as we see in the second chart below) selling as carefully as they can into every VWAP ramp... who knows but quite a swing...


and AAPL's inexorable VWAP-based selling pressure...

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insanelysane's picture

Bonus to Kevin for providing a positive close.

TruthInSunshine's picture

My (self limited to one per week) OT post of the week:

Apparently (allegedly), Obamney was/is willing to cut medicare & social security to get to a "grand bargain" on deficit/debt reduction (ha! ha!), but no one...I say NO ONE...better lay a finger on the Defense Contractors' (or Financial/Wall Street Complex teat sucking via ZIRP/NIRP & QE) Butterfinger, bitchez!!!

Here's some alleged documentation from Meet The [Lame Stream] Press (citing useful idiot and/or intentional obfuscator Bob Woodward):


Sun Nov 11, 2012 11:58 AM EST

Below are documents obtained by the Washington Post’s Bob Woodward that show a grand bargain proposal the White House was prepared to make in order to reach agreement with the House Republicans last year. This is how Woodward described the documents on Meet the Press this morning:


"This is a confidential document, last offer the president -- the White House made last year to Speaker Boehner to try to reach this $4 trillion grand bargain.  And it's long and it's tedious and it's got budget jargon in it.  But what it shows is a willingness to cut all kinds of things, like TRICARE, which is the sacred health insurance program for the military, for military retirees; to cut Social Security; to cut Medicare. And there are some lines in there about, "We want to get tax rates down, not only for individuals but for businesses."  So Obama and the White House were willing to go quite far."

White House Grand Bargain offer to Speaker Boehner Obtained by Bob Woodward

credittrader's picture

Surprise... AAPL Bonus Charts...

SheepDog-One's picture

Hey as long as its good for stocks, screw the dirt peasants and front line cannon fodder.

TruthInSunshine's picture

They're having a hard time closing green with QEternity4ever. I wonder what's up the Charlatan's...I mean Chairman's sleeve next?

akak's picture

Do I hear an echo of Leo and RobotTrader?


PS: I knew that your post was in jest, although it literally could have come out of either of their keyboards in all seriousness.

NotApplicable's picture

Why are you doing the heavy lifting for Woodward? (Who's doing the heavy lifting for the DC scriptwriters?)

Damn, I kind of thought you knew better than to play in the Kool-Aid.

TruthInSunshine's picture

I'm not. I'm just merely pointing out the super-duper non-intentional (but intentional) leak of a triple-super-top-secret document that Woodward widely distributed to the press corps (corpse) that shows how far Obamney is/was willing to go to protect the real sacred cows (e.g. Goldman-JPM & Lockheed-General Dynamics, etc.).

Cow's picture

"Obamney was/is willing to cut medicare & social security to get to a "grand bargain" on deficit/debt reduction"

The Repubs have agreed to various ratios of Govt Reduction in Spending to Taxes over the years (e.g. $3 trillion in cuts for $1 trillion in new taxes).  Guess how man times the new taxes have been put in place?

Now, guess how many times the spending cuts have made it?  Even Reagan got snookered on that one.

Gladly pay you Tuesday, for a hamburger today.


DoChenRollingBearing's picture

Truth allows me to sneak one in (thanks!)...  A whole lot of something going on down in Peru too.    Very good news for us!

"Another Digit, Another Comma!"


Rathmullan's picture

Yep. Watched the close. Kevin had a pretty easy time keepin the Dow green.

SheepDog-One's picture

Dead empty market and FED is about the only one left in 'trading' anything to themselves...should be pretty easy to control your own rigged casino game I guess.

slaughterer's picture

I would not say this market session was dead.  It brought forth some easy shorts intraday.

I remain skeptical though that this  ES 1380 level is a good mid-term short entry on indices.

The term structure on VIX will be annihilated by the NYFED once they start selling volatility again.  


LooseLee's picture

FUCK every one of you COWARDS who hide behind the FED. When the REVOLUTION begins, YOU will have a BULLSEYE right between your eyes!

Madcow's picture

We’re going over the cliff – because its in Washington DC’s interest to do so.

The passage of time makes things worse not better. So if we wait 6 months, when the economy has further deteriorated, there will be less appetite for ‘paying your fair share’ and more enraged insistence that the Gov. shut down all kinds of rat-holes foreign and domestic. If we go over now, both political parties will be able to blame the other guy and hold out hope that there’s some kind of solution just over the horizon.

The longer they drag this out, the worse the outcome is going to be. Ironically, the best outcome – for both parties – is the nameless faceless other-guys-fault “fiscal cliff”


SilverTree's picture



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LooseLee's picture

Let the BANKERS and WARMONGERS make this payment

ZeroFreedom's picture

Is this tax deductable. At least they can make it into a 501 C structure for any donations would be best.

Guess, might donate to stike it to my liberal and conservative friends and say I am paying my fare share where are you. 

SheepDog-One's picture

Thats whats really surprising to me, I really thought the banksters would have wanted Romney sock puppet in there to take the heat for it all turning sour. Perfect cover for them I would have thought. 

blunderdog's picture

Banksters, collectively, are non-partisan.  There are Dems and 'Pubs and even independents too.

SheepDog-One's picture

No I didnt say bankers are 'partisan' at all, simply said it would have been the perfect time to usher out the 'messiah puppet' and put in 'much hated whitey repub' to take all the blame. Would have been perfect cover for them, media would love to blame Romeny and rip him to shreds over it, and banksters could skate away free and clear.

blunderdog's picture

I was suggesting there are just about as many banksters who'd want to see shit pinned on the commie Democrat negro as on a nice guy like Mittens.

john39's picture

easier to create chaos with Obama... notice the 'military coup' threat growing in the MSM lately?  how do you think that would go down in the inner city....  otherwise, Obomber is great for the war machine...  nary a protest to be found as the war machine continues to grind flesh into pulp...  because he has a peace prize, see... bonafide.

spastic_colon's picture

higher dividend stocks appear to agree as they were the downside outperformers today, it looks like some early votes to take gains now and avoid wash sales before the end of 2012, maybe some foreshadowing?

LawsofPhysics's picture

Why the big jump in TIE (Titanium Metals Inc.)?  War mongers front-running?

TruthInSunshine's picture

Not sure about that, but spot Tungsten has been directly correlated with increase in requests for repatriation of gold by sovereigns from New York City & London.

a growing concern's picture

Cue Comex to up their margin requirements on tungsten holdings in 3..2..1..

LMAO's picture

Why the big jump in TIE (Titanium Metals Inc.)?  War mongers front-running?

Au contraire, the sheeple are waking up to the fact that their beloved Gov has been piling up on ammo.

+ action = -reaction

Who would have Guetta that?!


HedgeAccordingly's picture

Market appears to be waiting on the next 'liquidity event' - copper increasinly lethargic - http://hedge.ly/SVQs5U

Dapper Dan's picture


Glitch prevents trading in over 200 stocks on the NYSE

NEW YORK | Mon Nov 12, 2012 3:50pm EST

Reuters) - NYSE Euronext (NYX.N) on Monday suspended trading in over 200 stocks on the New York Stock Exchange due to a technical problem with a server, though the stocks in question were still trading actively on other markets.


pragmatic hobo's picture

... and what's up with housing stocks?

viahj's picture

"Utilities were the worst on the day by a long way "

-NE nuclear transmission issues and electrical grid rebuilding cost estimated to be revised much higher? 

JustObserving's picture

There is no market in the US anymore. The VIX is at 16.68.  There is no risk in the market as the Fed will buy equities if the market swoons.

With the Fiscal Cliff looming, the VIX should be at least 40 to 50.

The Fed is on eternal QE yet people talk about a market.  If your money is confetti, then can your market purchased with that confetti be anything else?


LooseLee's picture

SCREW all these LOSERS backing the FED. When the REVOLUTION begins they are all DEAD.

StychoKiller's picture

D@mn Lee, cain't ya just go upside their haids with yer numchucks?

Lost Wages's picture

Why are there no conspiratorial articles regarding the NYSE "glitch" today?

akak's picture

It's a conspiracy of anti-conspiritorialism, I tell ya!

Abraxas's picture

Lost Wages, you can fill in the blanks. Lets everyone blame different races for everything. You'd think that at least 20% of the posters here belong to KKK. Lets blame the Jews, the blacks and the purple ones for everything. Only we, the Whites are pure. Anybody who disagrees is either a Troll or a CoolAid drinker. Why did racism and hate become a norm here?

adr's picture

I'll take what part of the country did blacks, browns, jews, and purple people make better Alex.

Herodotus's picture

The KKK is the terrorist arm of the Democratic Party.

buzzsaw99's picture

the roach motel is hanging out the vacancy sign

chump666's picture

A tight (spreads) market, which is too tight.  Still think the post Obama win and sell off was HFTs, that then panicked long positions. But it didn't end up flash crashing.  The USD spot prices have been flat-lined for over a week.  Even the 'shale Gas' news ramp did nothing to move anything in this market.


q99x2's picture

Where's Ilene with his FAZ call.

chump666's picture

lol stagflation:

  • China's 21% m/m Oct iron ore import drop. 35% rise in ore price

Hooray for the money printers! You Keynesian f*cking idiots...You dumb bastards think shale gas will be an offset.  Yeah right the costs will be enormous, that and the middle east will pump oil prices up and Israel won't wait 10yrs to blow half of Iran away, who will then blow half of Saudi Arabia away.

I feel better now...

Atlantis Consigliore's picture

FED Print Print QE to Infinity;  Obamula knows to give out foodstamps and Phones; and the people of Rome will "Love Him For it" with the MSM Pimping

AynRandFan's picture

FDR was popular too, with his 100 different giveaway and make-work programs, even though he was an utter failure at resurrecting the economy and stole everyone's gold.

Motorhead's picture

Whole lot of Rosie, bitchez!