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Bearish VIX Positioning Near Record, As Russell 2000 Non-Commercial Longs At All Time High

Tyler Durden's picture


There were two quite notable pieces of information in today's Committment of Traders weekly update: on one hand, the net non-commercial spec position in VIX futures just plunged by 16,222 contracts to 104,284. This was just shy of the all time low net VIX spec position hit in early December, and means bets that the VIX will continue plunging lower will likely set a new record next week.  It could also mean that courtesy of the reflexivity of the market, in which the underlying is driven by its synthetic derivative (for a detailed explanation of how that works just ask Bruno Iskil and how massively mispriced various IG credits were thanks to his whale trade in IG9), the VIX itself is being pushed around by the VIX futures itself. That the dramatic move lower in the VIX futures began with the appointment of Simon Potter as head of the NY Fed's trading desk is perhaps not surprising.

The other notable point of data is that net non-commercial specs in the Russell 2000 Mini contract just hit an all time high. Using comedy financial channel logic this means they can only go much higher.

Source: CTFC


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Fri, 02/01/2013 - 18:23 | Link to Comment Dr. Engali
Dr. Engali's picture

When they push the vix down to penny stock valuation, I'm buying shitloads of volatility.

Fri, 02/01/2013 - 18:29 | Link to Comment spastic_colon
spastic_colon's picture

don't hold your breath.....monday stocks will be up and so again will VIX, just to get ready for the next ramp-o-rama

Fri, 02/01/2013 - 18:41 | Link to Comment bobthehorse
bobthehorse's picture

I talked to my poor old mother.

I asked if there was any hope.

She hit me in the head with a bag of frozen fish sticks.

Fri, 02/01/2013 - 19:08 | Link to Comment Kingkongballs827
Kingkongballs827's picture

VIX WILL GO BACK UP! PVC Gun Burial Tube. Holds 3 long rifles Ak47, SKS, AR15 plus ammo and gold & silver. Check it out here. AND IF YOU THINK YOU CAN MAKE THIS, GO DO IT



Fri, 02/01/2013 - 19:26 | Link to Comment DannyTX
DannyTX's picture

There may be three long guns in that photo, but I assure you that a 56" tube 6" in diameter won't hold but one gun.  However, pick the right one, and take your ammo out of the boxes and dump the loose ammo into the tube around the gun, and you have one nice little SHTF kit right there. 

Fri, 02/01/2013 - 19:36 | Link to Comment Whiteshadowmovement
Whiteshadowmovement's picture

Lol doc, those sound like the famous last words of tvix investors

Fri, 02/01/2013 - 21:43 | Link to Comment bobthehorse
bobthehorse's picture

I've got your bearish position.

I've got it hanging between my legs.


Fri, 02/01/2013 - 18:24 | Link to Comment LongSoupLine
LongSoupLine's picture

VIX, LIBOR, whatever...all fucking tools of the elite to fucking manipulate until they can't...


Upon which time they get a finger wag and fucking joke punishment called a "fine".


Fuck you pain for you bitch ass shit eating pricks is enough.

Fri, 02/01/2013 - 18:29 | Link to Comment sitenine
sitenine's picture

Risk is dead,  long live risk!

Fri, 02/01/2013 - 18:33 | Link to Comment Archetype
Archetype's picture

In uncontrolled bullruns careless people get killed.

Fri, 02/01/2013 - 18:57 | Link to Comment Archetype
Archetype's picture

Sooner or later this is whats going to happen:

Just need a little more patience...

Fri, 02/01/2013 - 19:09 | Link to Comment Archetype
Archetype's picture

Downvoted myself for picking an example of an avarage guy. What I really want is the wall street scum to crash and burn. Just think about it before going long the Russell 2000.

Fri, 02/01/2013 - 21:44 | Link to Comment Pareto
Pareto's picture

I guess his stop was mental.  brutal.  Emini, Rut, futures.....have to have stops.  and this guy bet it all.  Don't tell me they never seen him coming.  And that shit sinking feeling when he covers to close it out.  OMG.  $25G's.  So it probably rallied up on taking his original position, then hit a pivot and sunk through VWAP like shit through a goose.  Even though what he did was batshit crazy, everyone one of us here who trade at one time or another, did something like this on at least one occasion.  Aiiiyeee.

Fri, 02/01/2013 - 22:03 | Link to Comment flacon
flacon's picture

I have said the same words to my computer screen, especially today when gold took a dump this morning: "Fuck you motherfucker! Fuck your shit you fuck hole! Piece of shit asshole. Who the FUCK is selling GOLD?! Mutherfuckers!"



Fri, 02/01/2013 - 23:21 | Link to Comment W74
W74's picture

Buying opportunity.  No worries man, most of my ounces are in the 1,500 the 1,750 range, and even if I've "lost" a few bucks on a couple of them I'm not too worried.

It's not like I was using that money anyway and they're there for when I need 'em.  I do wish I had bought when gold was much, much lower, but the stock market during those times returned more than double for me anyway plus dividends.

Fri, 02/01/2013 - 22:01 | Link to Comment flacon
flacon's picture

He needs to calm down. Things always look different at 9:30:01 AM Monday morning. 

Sat, 02/02/2013 - 01:00 | Link to Comment JuicedGamma
JuicedGamma's picture

Classic.  I saw that video a couple of years ago... it still brings a smile.

You almost feel sorry for the guy but he's such a loser I hope he's found something more productive to do with his time.

Fri, 02/01/2013 - 23:18 | Link to Comment W74
W74's picture

But the rain in Spain falls mainly on the Tomato throwing folks trying not to get Gore'd.

Fri, 02/01/2013 - 18:57 | Link to Comment EclecticParrot
EclecticParrot's picture

"Contact your doctor immediately if your 'Russell 2000 Non-Commercial Long' remains fully erect & pointing skyward for more than four hours."

Prediction for a new buzzword financial phrase:  Priapistic Markets.

Fri, 02/01/2013 - 20:40 | Link to Comment razorthin
razorthin's picture

Come on in mom and pop.  The water's fine.

Finally some suckers to sell to!

Fri, 02/01/2013 - 21:13 | Link to Comment q99x2
q99x2's picture

TVIX down 97.11% over the last year. Bout the same as the previous year.

Fri, 02/01/2013 - 22:31 | Link to Comment JenkinsLane
JenkinsLane's picture

I guess he should be known as Simon "$VIX is my bitch" Potter, Phd. from now on.

I wonder whether he mumbles to himself, "Who's the daddy, who's the daddy", when he's placing his positions.

Sat, 02/02/2013 - 09:06 | Link to Comment DavidC
DavidC's picture

I have no doubt at all that when a futures/paper (and cash settled) based market is set up on an underlying instrument, that derivative will be used to push around the underlying instead of the underlying setting the price of the derivative.

Tail wags the dog.


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