VIX 2-Day Jump Biggest in 14 Months

Tyler Durden's picture


As we warned here, the compression in realized volatility to the levels we were experiencing early in the week was simply unprecedented for any length of time. Furthermore, the relative compression of equity volatility to credit volatility was a concern - sure enough - two days later, spot VIX has just seen the largest two-day percentage jump since November 2011; and equities are catching down to credit's less exuberant view of the world.

VIX's 2-day percenatage jump is the most in 14 months... and gets close to the gap from post-fiscal cliff...


Following our VIX post, the implied vol started to creep up heading into FOMC yesterday, rose quickly after that and exaggerated now by China's concerns...


and equity markets are starting to compress the wide divergence from credit...

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Thu, 02/21/2013 - 11:43 | 3263360 fonzannoon
fonzannoon's picture

No offense but I think the market starts pricing in QE6 today. Bullish. Same as it ever was.

Thu, 02/21/2013 - 11:57 | 3263459 Confundido
Confundido's picture

But, but, the Fed just told us that they are concerned about the long term impact of QE...and as Gartman wrote today: "...We shall accept that as a  statement of fact..."

Thu, 02/21/2013 - 12:18 | 3263567 camaro68ss
camaro68ss's picture

We really at QE6? i thought we were starting QE5?

No matter, My guns, bible, and PM's keep me warm at night

Thu, 02/21/2013 - 13:02 | 3263737 Edward Fiatski
Edward Fiatski's picture

QE6 is too predictable; you fleece the peasantry both ways: first by inflation, then by deflation.


Thu, 02/21/2013 - 11:45 | 3263362 buzzsaw99
buzzsaw99's picture

hey this isn't just another dot com bubble, this rally is for real! [/sarc]

Thu, 02/21/2013 - 11:47 | 3263374 Confundido
Confundido's picture

ha ha...remember when they coined the word "new economy"?

Thu, 02/21/2013 - 11:49 | 3263390 EscapeKey
EscapeKey's picture

Was that back when Gordon Brown "eliminated boom and bust" - before he "saved the world"?

Thu, 02/21/2013 - 11:50 | 3263400 buzzsaw99
buzzsaw99's picture

New eCONoME.

Thu, 02/21/2013 - 12:00 | 3263470 adr
adr's picture

When the dotcoms bust at least there really wasn't anything there. Sure a whole mess of 28 year old kids getting paid $60k to play fooseball all day, lose jobs, but an unproductive business going away really doesn't hurt the economy.

In the midst of DOTCOM 2.0 we also have record levels of channel stuffing. Warehouses are overflowing with product that was produced to make Obama look good and fudge the books of the publicly traded farce.

They booked forward sales as profit, sales that need to show up to make the books whole. Sales that will never show up. Like any ponzi it can't go on forever. Like I said before, they must be dumping billions of dollars worth of merchandise in deep sea trenches.

Look at Crocs, the entire recovery of the company was inventory stuffing their own retail stores. All that product was booked as sold to make it look like the company was growing revenues like mad. In the last quarter they "sold" almost $250 million in product but lost almost $60 million. They sell a rubber shoe that costs $.60 a pair for $30 AND THEY LOST $60 MILLION??!?!!

Look at the global production numbers from June 2009 on. Do you really think that level of production was met with an equal level of demand?

Thu, 02/21/2013 - 12:12 | 3263527 buzzsaw99
buzzsaw99's picture

I see a deflationary shitstorm brewing which will not be long averted.


For a charm of powerful trouble,

Like a hell-broth boil and bubble.

ALL: Double, double, toil and trouble;

Fire burn, and caldron bubble.

Thu, 02/21/2013 - 11:47 | 3263376 katwoman
katwoman's picture

I wouldn't get too excited by all this.  We have seen this movie again and again.

Thu, 02/21/2013 - 12:05 | 3263493 max2205
max2205's picture

Down 1.5% sure gets the doomers out

Thu, 02/21/2013 - 11:49 | 3263387 Dr. Engali
Dr. Engali's picture

Let me know when the vix gets above 40...then we are talking. Otherwise it's just a bump in the road to single digits.

Thu, 02/21/2013 - 11:53 | 3263421 Caracalla
Caracalla's picture

(Yawn)   Wake me up when they announce QE5

Thu, 02/21/2013 - 11:54 | 3263429 fonzannoon
fonzannoon's picture

we weren't on 5 already? I'm losing track....

Thu, 02/21/2013 - 11:54 | 3263427 vote_libertaria...
vote_libertarian_party's picture

My VXX shares are almost to break even...PAAAAAAARRRRRTTTTTYYYYY!!!!

Thu, 02/21/2013 - 11:56 | 3263449 Shizzmoney
Shizzmoney's picture

"This isn't the volitility you are looking for"

- Ben Bernanke

Thu, 02/21/2013 - 12:03 | 3263483 max2205
max2205's picture

Tvix back to 100?

Thu, 02/21/2013 - 12:31 | 3263611 moonstears
moonstears's picture

Didn't someone go big into long vix thru april and short banks thru april...was it  last week, I recall reading??

Thu, 02/21/2013 - 14:33 | 3264105 The Heart
The Heart's picture

Yes, here is that story.:

Purim is on the 23rd and 24th. Be aware!



Thu, 02/21/2013 - 13:10 | 3263782 CitizenPete
CitizenPete's picture



For the Histogram: 

Gold at 1570

Silver 28.76 

Thu, 02/21/2013 - 16:35 | 3264650 The worst trader
The worst trader's picture

its over sell the vxx



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