Unleash The "Henry": VIX Compression On

Tyler Durden's picture

With the cash bond market closed, futures and ETFs are on their algo-driven own and sure enough VIX compression is driving the show. Despite a HY credit market that seems a little less exuberant, it appears the powers that be have unleashed the 'Henry' once again... but rest assured those hedges are not being lifted - merely rolled out past the February debt-ceiling deadline.


It was all looking relatively uniform for the first 45 minutes but once HY credit decided that all was not well, it appears the 'Henry' was unleashed on the VIX complex...



And while spot VIX is the driving factor - it appears all that is really ocurring is that hedges are being rolled aggressivley out to the post-debt-ceiling maturities...

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scatterbrains's picture

Anyone hear anything from the house ? Seems quiet..  maybe once the markets close ?

flacon's picture

"February debt-ceiling deadline" I don't understand. Debt Ceiling was violated yesterday, is due right now, but some are saying it's not due until March, but now it's February after it was April/May time frame. Does anyone know what is going on here?


Have we or have we not breached the debt limit right now? Why February now instead of March? God I'm confused.....


Come February, will it be pushed out to June/July time frame? What's going on please........

fonzannoon's picture

Flacon we blew through the debt limit today but THANK GOD for TIMMAY. He is going to put his blood sweat and tears into "extroadinary measures" that will extend out till March. He will be working extra hours and will be sleep deprived and truly exhausted. Stories will be told of him passing out from sheer wear and tear as he pulls levers and stacks cynder blocks and whatever else he does so that your government can save your ass once again.

you are welcome.

Panafrican Funktron Robot's picture

The short answer is that they actually have no fucking idea until the cliff thingy is worked out.  Timmy G can get about $200 bln in headroom once the ceiling is officially breached today.  You could make an educated guess what that means as far as federal funding needs.  Mid to late February is probably a good guess, but that's assuming the cliff deal currently on the table gets passed.  If we go over the cliff, that $200 bln will actually last a few months longer.

ball-and-chain's picture

Is anybody in charge?

I'm currently watching Charlie Rangel telling everyone to relax.

So it's obviously time to panic.


Dan The Man's picture

CNN actually mentioned the $150B outflows from the market...for 3yrs running.  Took them long enough.

fonzannoon's picture


Did anyone really think this would end in anyway less than full retard?

Gypsyducks's picture

I expect word that no deal can be made about 3 minutes after the ES Mini's close.

muppet_master's picture

like GnR says:

just a little patience....spx now @ 1419 = start SHORTING !!!

sell on the tarp like news announcement of the so-called fiscal cliff on Wed.

today's LOW = 1398, high = 1419 so far...

BlueStreet's picture

S&P just broke the 100 day, ugh. 

SmoothCoolSmoke's picture

Can Kicking....a market's best friend.

Boilermaker's picture

Jesus Fucking Christ...



DeadFred's picture

Yeah I didn't think they would ramp the market despite all the indicators saying they might. Every MSM shill has been screaming "Cliff, cliff, cliff!!" so shouldn't I have recognized ths as a contrarian indicator? Yes but I was fooled by the way the market has ignored the drama from the start. I figured we were going to get the equivalent of Lucy pulling the football away from Charlie Brown after telling him that he just needs to trust. Instead Lucy punted the can for two months. Go figure.

edb5s's picture

Retirement on!

mammoth mo's picture

So on a day in which the market will be up less than 1%.


The vix goes down 20%.



WmMcK's picture

At first I tried to render (Henry:) VIX as a roman numeral!
Sweet 16 -- maybe I need another drink.

Pareto's picture

Fucking beat down on anybody who bought the dip on the VIX this morning.  Takes the escalator up and the elevator down.  EVERYTIME.  Fuck I'm glad I don't hedge with this piece of shit anymore.

XtraBullish's picture

Never underestimate the replacement power of equities within an inflationary spiral. Everyone gnashing and gnarling over the "ramp" but it is all quite logical - every G20 central bank is debasing their currency and imploding their bond markets. That means that cash is trash - you cannot hold cash. Shorting the E/S is like going leveraged-long cash while going leveraged-long equities or gold or oil is like going super-leverage-short cash - exactly in line with policy-makers worldwide.

Now if the G20 changes policy in favour of protecting their currencies/bond markets, I wiull change my strategy but since the U.S. will NEVER - repeat - NEVER be able to pay off its debt EVER, then the currency behind the debt is doomed and being long such currency is a flawed stategy, the opposite of which is to OWN stocks (and gold and oil and farmland and so on and so forth).

Thank you for a huge day today as the aroma of barbecued shorts was truly sublime.

Happy New Year!