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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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Confundido
Confundido's picture

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

Thu, 02/21/2013 - 11:49 | Link to Comment 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 | Link to Comment buzzsaw99
buzzsaw99's picture

New eCONoME.

Thu, 02/21/2013 - 12:00 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment max2205
max2205's picture

Down 1.5% sure gets the doomers out

Thu, 02/21/2013 - 11:49 | Link to Comment 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 | Link to Comment Caracalla
Caracalla's picture

(Yawn)   Wake me up when they announce QE5

Thu, 02/21/2013 - 11:54 | Link to Comment fonzannoon
fonzannoon's picture

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

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

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

Thu, 02/21/2013 - 11:56 | Link to Comment Shizzmoney
Shizzmoney's picture

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

- Ben Bernanke

Thu, 02/21/2013 - 12:03 | Link to Comment max2205
max2205's picture

Tvix back to 100?

Thu, 02/21/2013 - 12:31 | Link to Comment 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 | Link to Comment 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 | Link to Comment CitizenPete
CitizenPete's picture



For the Histogram: 

Gold at 1570

Silver 28.76 

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

its over sell the vxx



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