VIX Dumps To 13.00 As Stocks Catch Down To Risk

Tyler Durden's picture


UPDATE: VIX and SPX have recoupled


Given the compression in realized volatility and surge in stocks, it is not totally surprising that spot VIX would see some catch down compression. Sure enough, spot VIX just plunged to 13.00 (for the first time in almost 6 years). Stocks are falling as VIX is falling though - in a convergence from yesterday's gap-open. Longer-date VIX futures are also falling but not as much - implying further debt-ceiling deadline steepeners being laid out.


VIX vs SPX...


Implied vol has tracked realized vol almost prefectly (lower pane) for the last few weeks...

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Fri, 01/18/2013 - 12:05 | 3166332 fonzannoon
fonzannoon's picture

VIX the graveyard for falling machette catchers.

Fri, 01/18/2013 - 12:12 | 3166356 AndrewJackson
AndrewJackson's picture

Couldn't agree with you more on that statement.

Fri, 01/18/2013 - 12:08 | 3166342 Cognitive Dissonance
Cognitive Dissonance's picture

That rubber band will eventually break if you keep pulling on it like that.

Fri, 01/18/2013 - 13:26 | 3166621 DavidC
DavidC's picture



Fri, 01/18/2013 - 12:10 | 3166352 Dr. Engali
Dr. Engali's picture

Come on Ben push it down to 10...I dare you.

Fri, 01/18/2013 - 12:14 | 3166362 ekm
ekm's picture

There's almost nothing left to trade.


It's either extremely low volatility or extremely high volatility.

No other option.

Fri, 01/18/2013 - 12:24 | 3166407 francis_sawyer
francis_sawyer's picture

Hindu Cow-ville... [one peg from Alfred E Newman-ville]

Fri, 01/18/2013 - 12:39 | 3166456 Skateboarder
Skateboarder's picture

Straight up slaughterhouse for people just getting into the market thinking 'gee, I should "invest" my money in the stock market.' Some people simply don't understand that markets are no mo. Whatever 'credibility' there was left in trading disappeared with the algos.

On that note... HOW THE HELL IS FB $30!? WTF!

Fri, 01/18/2013 - 12:45 | 3166484 francis_sawyer
francis_sawyer's picture

In the year 2019 ~ FB will still be trading at $30 [by Nexus 6 replicants who do slave labor in the out colonies]... But a few will jump their programming and come back to Earth searching for Tyrell Zuckerberg so they can gouge his eyes out... 

Fri, 01/18/2013 - 12:55 | 3166524 Skateboarder
Skateboarder's picture

Most pathetic exit strategy ever. We're gonna see the .com 2.0 bust pretty soon here. Nothing to 'innovate' on after this though. Both hardware and software have been stalling for a while now. The exponential thing is flattening out.

Fri, 01/18/2013 - 18:15 | 3167669 Freddie
Freddie's picture

LOL!  We can hope.  I know a guy who is 50ish who is on there.  There are loads of women that are late 30s to early 50s all trying to be celebs and reality "stars."   It is incredibly weird and disturbing.  I think they are replicants.

Fri, 01/18/2013 - 12:16 | 3166365 Mark Carney
Mark Carney's picture

"I'll see your 10, and raise you to 9!"


Fri, 01/18/2013 - 12:17 | 3166377 Dark Meadowlark
Dark Meadowlark's picture

To be expected. We are in, say it with me now, an ECONOMIC RECOVERT! EVERY metric of economic measurement is showing RECOVERY not collapse. I don't understand the overall bearishness and hatred towards economic policy makers on this website. 

Fri, 01/18/2013 - 12:30 | 3166432 pods
pods's picture

I tried, I really did. But I keep chortling every time I say Economic Rec.. There I go again.


Fri, 01/18/2013 - 12:51 | 3166505 Osmium
Osmium's picture

I’ll believe in a recovery when I see the labor participation rate start to improve.

Fri, 01/18/2013 - 12:19 | 3166387 pragmatic hobo
pragmatic hobo's picture

vix at 13 ... looks like a chance to pick up some otm vix calls ...

Fri, 01/18/2013 - 12:19 | 3166388 Xibalba
Xibalba's picture

We're saved!

Fri, 01/18/2013 - 12:20 | 3166391 Jason T
Jason T's picture

Per Armstrong:


The next three weeks will be choppy with the primary targets being the weeks of 01/28, 02/11, and 03/11. We have Weekly Bullish Reversals at 1365810 and 1369790. These define the overhead resistance. The Weekly Bearish start at 1309150. Our Minor Month Bullish Reversal stands at 1333180 while the Majors are 1399470, 1412110,  and 1428000 just above the 2007 high. The Yearly Bullish Reversal still stands at 1333825. This was not elected at the close of 2012 and remains initial resistance during 2013. Major support for 2013 lies at 1102500-1060500 with initial yearly support at 1165500.

The Daily Bearish Reversals at 1330955, 1329335, 1312900, and 1309480. The key days ahead will be 01/23 with high volatility starting 01/24.

Fri, 01/18/2013 - 12:24 | 3166402 otto skorzeny
otto skorzeny's picture

tvix is going to get another 10-1 split in a few weeks at this rate

Fri, 01/18/2013 - 12:29 | 3166426 bullmkt
bullmkt's picture

wait,what a plunge! 2 ES points or 0,1%?

does Durden look at ACTUAL charts and not VIX, HYIG  or his "context charts"? The uptrend continues.Buy the the dip:)

Yo Tyler,whens Tha plunge? 

Fri, 01/18/2013 - 12:48 | 3166492 HelluvaEngineer
HelluvaEngineer's picture


Fri, 01/18/2013 - 12:59 | 3166536 bullmkt
bullmkt's picture

of which year ? this doom and gloomn site suggested the uptrend is over at about ES 1200.Now close to 1500.

"They" may run this mkt months and years while sheep short.

Fri, 01/18/2013 - 13:08 | 3166567 gjp
gjp's picture

It may be near-suicide to fight the Fed with their infinite printing machine, but it can hardly be called sheep-like.  It is afterall fighting the power, is it not?

Herd following sheep behavior is more the opposite, the cheerleaders lining up behing the kleptocrats even as the real economy dies.

Fri, 01/18/2013 - 18:09 | 3167644 Freddie
Freddie's picture

Doom gloom choom.

I like the Tyler(s) but their markket calls are starting to look like Whitney Tilson.

Fri, 01/18/2013 - 13:51 | 3166700 crzyhun
crzyhun's picture

Total VXX surpression!!! How I do not know, but it is like the FEDNY kiteing this market. 

Fri, 01/18/2013 - 14:18 | 3166801 Ham-bone
Ham-bone's picture


VIX in freefall at 12.50 = nothing to worry about forever and ever


VIX still collapsing at I hear 12?

Fri, 01/18/2013 - 14:20 | 3166825 q99x2
q99x2's picture

The ticker that keeps on giving, TVIX from $10,000 to $5.50 in under 3 years

Fri, 01/18/2013 - 14:24 | 3166853 NEOSERF
NEOSERF's picture

Are you all watching this...amazing...what the eff is going on given the world today?  Talk about death of the stock market which in itself is amazing given that Ben has basically gone all in trying to push savers out of bonds and savings accounts into the market...shocking

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