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VIX Breaks Losing Streak As Everything Bought Except Apple

Tyler Durden's picture





 

VIX rose majestically (by a mere 0.25 vols and still below 14%) for the first time in seven days (but the term structure steepened a little more) and while stocks did not like that, they still managed to pull off the lows, close green, and remain in a 1% range for the last week. Treasury yields continue to slide lower (even with a weak auction today) as it would appear the end of the bond bull market was called a little premature (and as we noted, merely reflected short-term rate-locks for corporate issuance). While HLF grabbed headlines, it is AAPL that seems to be swept under the rug as it ends the day crashtastically at its lows (where its margins will be after the iPoor is released). The USD leaked ever so gently higher on the day - ending practically unchanged on the week (with JPY 0.5% stronger on the week). Commodities chopped around non-directionally (though Silver is the week's winner so far). Financials, and Energy had a tough day (and homebuilders were sold hard after Europe's close). HYG seemed today's lever of rampaciousness and remains rich to intrinsics (as cash HY bonds just can't catch a bid at record-high prices). Once again the S&P reversed its (up)trend at around the European close but late-day VWAP reversion held us bid on the day.

Alcoa closed the day in the red as the apparent catalyst for the rally (China strength? or whatever magic was derived from the CEOs banter) faded...

 

S&P 500 futures closed perfectly at their VWAP as the well-controled market remains very narrowly rangebound...

 

but Treasuries have only gone one way since the initial spurt...

 

as the initial asset allocation shifts fade and assets recouple a little more...

 

The correlation between risk-assets and equities did however drop notably this afternoon (right) but as the afternoon wore on so stocks caught down to Treasury and USD reality. ETFs remain very well anchored by the algos (left) but HYG was the main lever to try and ramp us today...

 

HYG and SPY have recoupled (as VIX and stocks have also)...

 

The US Open to EU Close to US Close pattern continues... Financials and Builders...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: AAPL...oops

 

Bonus Bonus Chart: HLF...oopser...

 


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Wed, 01/09/2013 - 17:20 | Link to Comment busted by the b...
busted by the bailout's picture

It appears Apple has jumped the shark.

Wed, 01/09/2013 - 17:28 | Link to Comment DeadFred
DeadFred's picture

It was a good day to own BAC puts :)

Wed, 01/09/2013 - 18:27 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

It's sad to hear the lamentations in the TOS trading rooms.  People are still actually losing their life savings on AAPL calls.  

Wed, 01/09/2013 - 18:49 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The E*Trade Baby has no idea how manipulated the infested waters be.

Wed, 01/09/2013 - 17:22 | Link to Comment Dr. Engali
Dr. Engali's picture

How long before the vix is a penny stock?

Wed, 01/09/2013 - 17:24 | Link to Comment buzzsaw99
buzzsaw99's picture

it is more like a vapor

Wed, 01/09/2013 - 17:28 | Link to Comment Yen Cross
Yen Cross's picture

 

 China news later ;  

Tentative   CNY     Chinese Trade Balance   20.05B 19.60B

 

  ECB meeting over night U.S. time. VIX should find some buyers S/T.

Wed, 01/09/2013 - 17:29 | Link to Comment Dr. Engali
Dr. Engali's picture

AppleSoft

Wed, 01/09/2013 - 17:32 | Link to Comment SuperDeDuper
SuperDeDuper's picture

VIX wont stay below 14 for long, I bet by the end of the week it will be between 14-15.  We just need a few rumors about the debt ceiling.

Wed, 01/09/2013 - 17:41 | Link to Comment busted by the b...
busted by the bailout's picture

Place your bet here -- UVXY; $15 bucks a 2X pop, and good luck.

Wed, 01/09/2013 - 17:35 | Link to Comment AccreditedEYE
AccreditedEYE's picture

None of this matters. Buy up or be left behind. It's really that simple. You think Dan Loeb would be putting that kind of money to work in a high beta name like HLF if he thought the bottom of the market was falling out tomorrow? There are 2 things you can count on in this world: The FED will ALWAYS print and print and print AND BTFD will ALWAYS be in effect as long as they do. It's that easy. People rant about the "overlords" making more and more money... you know why??? THEY ARE BUYING THE DIP!! Buy gold, buy silver, buy equities or commodities, but by GOD, buy something. Don't get left behind. Believe me, when the end comes.. you'll f-ing know it.

Wed, 01/09/2013 - 17:41 | Link to Comment SuperDeDuper
SuperDeDuper's picture

what dip? We are at the highest level since 2008, this is called a top.  Going 'all in' right now is silly, there will be a pull back, i'd buy that dip.  I'll start buying the last few hours of the debt ceiling debate.  You can bet your trillion dollar coin the market will drop leading up to that. 

Wed, 01/09/2013 - 17:45 | Link to Comment AccreditedEYE
AccreditedEYE's picture

If you bought on yesterdays dip, you're up almost 1% already. If you bought before/during the Cliff bullshit, (Which was the most recent dip) you're up +5%. Lots more to go on the upside. Top you say? I'll remind you of that in another 400 points.

Wed, 01/09/2013 - 18:28 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

XIV up almost 15% YTD.  lol

Wed, 01/09/2013 - 18:43 | Link to Comment AccreditedEYE
AccreditedEYE's picture

LOL. Exactly... Russell 2000 up .55% today, 6% YTD! Better than a annual high yield coupon!

Wed, 01/09/2013 - 20:50 | Link to Comment horseman
horseman's picture

Agreed. On Fri prior to the fiscal cliff resolution I posted how I have had my ass handed to me by going long SDS calls everytime ZH said mkt was gonna crash.  That Fri I bought calls on SPXL and sold at near dbl.  I think the strategy is be aware of the pull back, but don't try to short the mkt, BTD,  get out quick and repeat.

 

Wed, 01/09/2013 - 17:48 | Link to Comment Joe Davola
Joe Davola's picture

Anchorman 2 - Fuck You Copper Theives!

Wed, 01/09/2013 - 18:04 | Link to Comment Yen Cross
Yen Cross's picture

 Check this piece out Joe.  Is this spike 'one last hoorah' for iron ore?

 Interested to hear your thoughts./

Wed, 01/09/2013 - 17:49 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

i wonder why morton's steak house isn't more valuable than mcdonalds?  they have great margins

Wed, 01/09/2013 - 18:58 | Link to Comment EclecticParrot
EclecticParrot's picture

I'll go out on a limb here (not difficult for a parrot, it seems):  your high school term papers also had big, fat margins (?)

Wed, 01/09/2013 - 18:44 | Link to Comment RECISION
RECISION's picture

So just about the only company making decent coin is down, while every one else is up...

I guess that just about say everything you need to know about the "market".

 

Wed, 01/09/2013 - 18:48 | Link to Comment Yen Cross
Yen Cross's picture

 Is anyone listening to this horse shit on CNBS?  They are pump/pimping Platinum and Paladium! Are you kidding me?

 What a bunch of rookies! If those idiots knew anything about metallurgy, and extraction methods it would be a bad commercial!

 

Wed, 01/09/2013 - 19:57 | Link to Comment bullmkt
bullmkt's picture

ello again bearish zh.so whens the plunge.must be soo hard to observe these bullish markets in 2012 and into 2013? Just remember Durdens comments on 28th,during the correction,when he wrote that " this is what fiscall cliff looks like".Almost got an Durden-asm.Needless to say markets or up from then,heading UP.Of course.

Wed, 01/09/2013 - 20:37 | Link to Comment Joe moneybags
Joe moneybags's picture

Hey, bullmkt, keep quiet.  Your end zone dance will likely jinx the rally.

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