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Europe Ends Quiet Week With VIXplosion To Six-Week Highs

Tyler Durden's picture





 

EURUSD remains bid on every dip but has been more choppy this week as the world realizes the implications of desperate repatriation (see failed ECB sterilization). Spanish stocks bucked the trend this week and are down 2% - more than double the losses of the rest of Europe's stocks. European sovereign bonds are bleeding gently higher in yield and spread (Spain/Italy +10bps or so). Just as we saw in the US, it appears today's under-the-surface anxiety (that very few in the mainstream comprehend) has led to a bid for protection as Europe's VIX has jumped 2.5 vols to 20.75% - its highest in 6 weeks.

 


Europe's VIX is sending some signals that iot appears investors are choosing to ignore...

 

and what happened the last time the ECB failed to sterilize its bond purchase accruals?

 

 

But apart from that - Europe is all fixed...

 

Charts: Bloomberg

 


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Fri, 12/28/2012 - 12:41 | Link to Comment buzzsaw99
buzzsaw99's picture

that can't be right. euro market gains are permanent and sustainable. everybody remain calm, there is no need to panic.

Fri, 12/28/2012 - 12:42 | Link to Comment SuperDeDuper
SuperDeDuper's picture

Good thing i bought UVXY at $18 last week, then when VIX gets above 25-30 after we cliff dive i will sell that beehotch and buy some XIV.  Ride the roller coaster.  Make money, retire early, watch the sunsets and never the sunrise.

Fri, 12/28/2012 - 12:48 | Link to Comment TheLooza
TheLooza's picture

I can get on board with that. Exceptthe last part. Cathcing the sunrise on the backend of a coke and slut bender really ties the room together.

Fri, 12/28/2012 - 12:47 | Link to Comment Bastiat009
Bastiat009's picture

Yet another day when the euro and European stocks outperform gold but I am pretty sure that ZH won't say a word about it ... oh wait, wait, Europe will fall into the ocean soon. Buy gold it does well in water.

Fri, 12/28/2012 - 12:53 | Link to Comment NotApplicable
NotApplicable's picture

Perspective.

Get you some.

Fri, 12/28/2012 - 13:00 | Link to Comment buzzsaw99
buzzsaw99's picture

if you are so froggy get in kneedeep!

Fri, 12/28/2012 - 13:01 | Link to Comment Titus Flavius C...
Titus Flavius Caesar Vespasianus Augustus's picture

http://www.blanchardonline.com/market_charts/?focus=10year

 

You took the short bus to school, didn't ye?

 

 

Fri, 12/28/2012 - 12:57 | Link to Comment Silversinner
Silversinner's picture

My gold buys now 6 times more stocks then it did

ten years ago,I call bullshit on your comment,Bastiat009

But happy new year anyway :)

 

Fri, 12/28/2012 - 13:02 | Link to Comment AssFire
AssFire's picture

FDIC insurance drops to $250k per account Jan 1st... Hope you guys have it covered.

Fri, 12/28/2012 - 14:08 | Link to Comment Harbanger
Harbanger's picture

FDIC is another scam. They simply don't have the money to cover all the accounts. If they decided to give people their money back it would be in worthless dollars.

Fri, 12/28/2012 - 13:03 | Link to Comment Titus Flavius C...
Titus Flavius Caesar Vespasianus Augustus's picture

Buying Spanish bonds is a lot like buying a Taylor Swift record.

 

Sure, it might look good, at first, but it's really just shitty country.

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