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VIX Snaps To Six-Month Highs On Longest Stocks Slump Since May

Tyler Durden's picture




 

For the first time since May, the S&P 500 has fallen for 5 days in a row. VIX has very much heralded the fact that investors were not as bullish as media-types would like to believe - as we have vociferously noted - and today's jump in the VIX pushes it to six-month highs over 22.5%. The S&P 500 futures ended the day-session at the week's lows testing down just shy of last week's flash-crash lows. Meanwhile, while equities slumped catching down to Treasury yields, commodities were relatively flat as was the USD; it seems that the excess longs in equities relative to the rest are unwinding - a different picture than what was seen during last Summer's debt ceiling debate.

 

S&P 500 futures slumped further after the day-session close to test the flash-crash lows from last week...

 

VIX has been sending the message (and we have been relaying iot - especially yestewrday's repeat of the dump-and-pump from pre-crash last week!)... VIX (red) vs ES (green)

 

VIX has seen the biggest 7-day rise in 16 months - reacting in the same way as we did into the debt ceiling debate last year...

 

And VIX's term-structure is following the same path as last summer!!

 

Which leaves the S&P at the lows pre-Draghi II...

 

The difference is that this time - equity investors are the most net long since 2007 highs!

 

Equities were notably weaker than other asset classes into the close (upper right) - though ETFs saw VXX slamming higher (sending risk lower) as we closed...

 

Meanwhile, the Dow Transports remain +2% on the month while the rest of the majors (RTY excluded my apologies) are red...

 

Gold and Silver close the week unch with Oil higher...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: AAPL lowest close since February 17th!

 

Bonus Chart: Oldie but goodie... Treasury vs S&P 500...


 

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Fri, 12/28/2012 - 17:11 | 3102937 Calidreaming
Calidreaming's picture

it feels like today was the first day in a year market didnt ramp the last hour.

Fri, 12/28/2012 - 17:38 | 3103068 sunaJ
sunaJ's picture

Just giving cover for the politicians the markets are. They will come up with something "grand" that will solve everything for a bit anyway /s. But for now, it is the market that must rage, for it's full speed ahead god dammit in a direction that is the culmination of our fallacy and corruption. Will something terminal to this economic paradigm finally give way? Lord knows, so stay tuned...

Fri, 12/28/2012 - 19:43 | 3103579 ball-and-chain
ball-and-chain's picture

Nothing will happen to the paradigm.

The Ivy League Mafia has too much invested in it.

The Ponzi Scheme will live on for years.

Just ask the Japansese.

http://www.angrysinner.blogspot.kr/2012/12/yesterday-was-freezing.html

Fri, 12/28/2012 - 18:24 | 3103266 max2205
max2205's picture

Bad news flow

Fri, 12/28/2012 - 17:12 | 3102946 TheDarkKnight
TheDarkKnight's picture

Project Mayhem Monday ... erm I mean.. Nothing to see here yall already screwed anyway

Fri, 12/28/2012 - 17:22 | 3102988 Rainman
Rainman's picture

nah....boyz ain't about to blow it up on a 2 and 20 final payday calculation. even i know dat.

Fri, 12/28/2012 - 17:15 | 3102960 Rathmullan
Rathmullan's picture

All brought to you buy the ny fed in conjunction with the boj as an incentive for the old sluts and pedophiles in dc to agree to extending tax cuts for 6 months and to a 3% across the board spending cut for 2013 hoping that this is enough for S&P and Fitch to not act till mid calendar year.

Fri, 12/28/2012 - 17:17 | 3102970 rubearish10
rubearish10's picture

Yeah, post close market clearly defines how broken this thing really is. WOW!

Fri, 12/28/2012 - 17:20 | 3102981 busted by the b...
busted by the bailout's picture

O has tightened the screws on Boehner and McConnell. 

I think the prez planned this to scare the Republicans into voting for his proposal:  Schedule the meeting for 3PM and then make a negative announcement 20 minutes before the markets close for the week.  Markets drops.  Republicans worry all weekend about what the markets do Monday if no agreement is made. Republicans give in and agree to support O's proposal Sunday evening.

Fri, 12/28/2012 - 17:22 | 3102995 Dr. Venkman
Dr. Venkman's picture

you give President Obama too much credit.

Fri, 12/28/2012 - 17:53 | 3103129 busted by the b...
busted by the bailout's picture

Maybe, but if he didn't plan it, then it makes them look pretty stupid the way it came down.  If it wasn't his plan to scare everyone, then they should have scheduled the meeting for the AM, so that, if the meeting was unproductive, they would have had time to pump the market back up with stories of potential agreement before the close.

Fri, 12/28/2012 - 17:20 | 3102984 UnRealized Reality
UnRealized Reality's picture

Another blown conspiracy by ZH, the market didn't recover at 3:30 pm.

Fri, 12/28/2012 - 17:23 | 3102998 Zer0head
Zer0head's picture

they've been meeting for almost and hour and a half -

no, Obama in classic grade 3 negotiating style arrived an hour and 15 minutes late

Bulletin meeting has just ended

Fri, 12/28/2012 - 17:25 | 3103003 Racer
Racer's picture

And they wonder why the people have lost confidence in the 'market'

Fri, 12/28/2012 - 17:24 | 3103004 sitenine
sitenine's picture

Got gold?

Fri, 12/28/2012 - 17:26 | 3103009 Milton Waddams
Milton Waddams's picture

so sick that the future course of the nation will likely be dictated by the whims of financial markets.

it's akin to your doctor making healthcare decisions based on how he does at a vegas blackjack table.

Fri, 12/28/2012 - 17:43 | 3103031 kaiserhoff
kaiserhoff's picture

The Tylers do a fine job with the charts.  I barely have the energy to read this stuff, but occasionally, it's worse than the charts show.

When I trade, I trade exclusively option spreads.  Adjusted for ZIRP (interest is often half an option's value), equity options are almost as expensive now as when they first started trading on exchanges in the 70s, and no one knew how to price them.  Buyer beware. 

Sat, 12/29/2012 - 04:15 | 3104289 MeelionDollerBogus
MeelionDollerBogus's picture

You got that right. Today’s (12/28/2012) spreads on VXX far out-paced the up-ticking matched to SPY’s fall. Just absurdly bad to trade it today in what otherwise could have been promising. By all means, be ready for a multi-week play with +20% +50% & perhaps +100% in prices on VXX but the next VXX option I’d look at would be a Put once VXX goes to a peak. Until then I'd think the VXX shares are safer seeing the spreads & no expiration.

2012 09 13 spy crash soon - goldpricemodel

I'm not the only one to conclude something like this...

2012 09 13 crash soon : ZEROHEDGE chart with @SqueezedEquity

so we'll see :D

Fri, 12/28/2012 - 17:32 | 3103040 yogibear
yogibear's picture

The Vegas nation. A country based on high wager financial bets and money skimming.

Time for the ultimare bet, financial Russian roulette!

Fri, 12/28/2012 - 18:05 | 3103182 Squid Vicious
Squid Vicious's picture

Wonder how Robotarder is navigating this drop? hiding out in some best of breed retailers like JCP and Bed Bath &Beyond, most likely... hedged with some XRT and XLY?

Fri, 12/28/2012 - 22:21 | 3103968 orangegeek
orangegeek's picture

SP500 Weekly shows bearish trend should pick up momentum in January.

 

http://bullandbearmash.com/chart/sp500-weekly-falls-2-short-week/

 

It's going to get messy out there.

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